You have been provided with the following projections regarding the costs of a fast fast...
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Accounting
You have been provided with the following projections regarding the costs of a fast fast food restaurant for the next fiscal year: Desired after tax net income as a % of investment 15% Owners equity investment in the business 160,000 Present book value of furnishings & equipment 130,000 Depreciation rate on furnishings & equipment 20% Present bank loan balance 80,000 Interest rate on bank loan 9% Insurance expense 5,750 Business license expense 3,275 Energy costs 11,600 Miscellaneous Wages 63,675 Food cost as a % of sales 34% Variable wage cost as a % of sales 26% Other variable costs as a % of sales 9% Seat in the restaurant 135 Current income tax rate 33% Operational days opened (closed Christmas) 364 Daily average seat turnover *Calculate the revenue required for this restaurant to cover all costs next year and achieve it's profit objectives. *Calculate the restaurant's average check required to reach it's profit objectives. 2.9
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