Bob owns a restaurant. The average price per order is $15 and the average variable cost per The restaurant remains open 6 days a week for 50 weeks per year. The rent, utilities and other expenses are $8,000 per month. Bob pays $3,000 per month to his only employee in the resta also spends $12,000 every year for renovation and maintenance. If Bob wants to earn a before $8,000 per month, what should be the daily sales (in dollars) in the restaurant?
Bob owns a restaurant. The average price per order is $15 and the average variable cost per The restaurant remains open 6 days a week for 50 weeks per year. The rent, utilities and other expenses are $8,000 per month. Bob pays $3,000 per month to his only employee in the resta also spends $12,000 every year for renovation and maintenance. If Bob wants to earn a before $8,000 per month, what should be the daily sales (in dollars) in the restaurant?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1: Introduce to contribution margin ratio
VIEWStep 2: Working for contribution margin ratio
VIEWStep 3: Working for fixed cost per year
VIEWStep 4: Working for desired profit per year
VIEWStep 5: Working for required sales per year for desired profit
VIEWStep 6: Working for daily required sales in dollars
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