Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. what is the required revenue to satisfy the fo

1. What is the required revenue to satisfy the following conditions? Contribution margin per unit = $4,...

80.2K

Verified Solution

Question

Accounting

  1. 1. What is the required revenue to satisfy the following conditions? 
  2. Contribution margin per unit = $4, breakeven (operating income = $0), fixed cost = $18,000, average variable cost per unit = $12


  2. 2. A 100-seat restaurant with average daily turnover of 2 and average check of $15 opens 365 days a year. Total variable costs are 438,000. Fixed costs are $636,000 a year.
  1. How much is the current operating income?

  1. What is the variable rate?

  1. 3. The owner wants to increase the operating income. She decides the best way is to join a national franchise. The franchisor requires a fixed loyalty fee of $20,000 a year and 3% of the revenue to be contributed to the national marketing program. How much revenue does the restaurant have to generate to achieve an operating income of $300,000?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Human Physiology Explain in detail the process that establishes and maintains the medullary osmotic gradient in the...

Medical Sciences
Q

five major factors that can lead to development of athesclerosis.what are the control measures.

Medical Sciences
Q

Nitrogen can be liquefied using a Joule-Thomson expansioni process. This is done by rapidlyl and adiabatically...

Mechanical Engineering
Q

What is the volume of this rectangular pyramid 14 in XL 18 in 18 in...

Geometry
Q

The rate of a continuous flow for a company is growing exponentially. At the beginning,...

Basic Math
Q

1. The table shows the number of turtles hatched at a zoo each year since...

Basic Math
Q

Justify that the following R integrals do exist and specify them i x1x x d...

Calculus
Q

Find the general solution of the differential equation or state that the differential equation is...

Calculus
Q

Choose the correct graph below Sketch an angle 0 in standard position such that 8...

Algebra
Q

help On the first day of...

Accounting
Q

Please don't solve using excel. Write neatly/clearly please. For...

Finance
Q

Firm D is considering investing $682,000 cash in a three-year project with the following cash...

Finance