You and Sally agree to research the costs/profit ratio to determine whether to buy or...
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Accounting
You and Sally agree to research the costs/profit ratio to determine whether to buy or lease the Boca Raton property.
The first step requires you to calculate the potential overall profit (Here is the information you will need)
Profit = number of seats (259 seats with 90% occupied on average) x the number of meal seatings (3 per night; 6:00, 7:30, and 9:00 pm) x average meal price of $250 x 365 days of operation.
Food and service expenses are 68% of your revenueadditional costs, including insurance, professional fees, etc., equal 9.9 million per year.
Rent would cost $100 per seat per day. The cost of the mortgage is $125 per seat.
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