CVP analysis, income taxes. The Express Banquet has two restaurants that are open 24-hours aday. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffeeto full meals. The average sales check per customer is $8.50. The average cost of food and other variablecosts for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100.Required 1. Compute the revenues needed to earn the target net income.2. How many customers are needed to break even? To earn net income of $107,100?3. Compute net income if the number of customers is 170,000. 3-22 CVP analysis, income taxes. The Express Banquet has two restaurants that are open 24-hours aday. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffeeto full meals. The average sales check per customer is $8.50. The average cost of food and other variablecosts for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100.1. Compute the revenues needed to earn the target net income.2. How many customers are needed to break even? To earn net income of $107,100?3. Compute net income if the number of customers is 170,000|Required

The cost volume profit analysis, or CVP, seems to be a planning technique used by management to…

Answered: CVP analysis, income taxes. The Express…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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CVP analysis, income taxes. The Express Banquet has two restaurants that are open 24-hours a
day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffee
to full meals. The average sales check per customer is $8.50. The average cost of food and other variable
costs for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100.
Required 1. Compute the revenues needed to earn the target net income.
2. How many customers are needed to break even? To earn net income of $107,100?
3. Compute net income if the number of customers is 170,000.

3-22 CVP analysis, income taxes. The Express Banquet has two restaurants that are open 24-hours a
day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffee
to full meals. The average sales check per customer is $8.50. The average cost of food and other variable
costs for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100.
1. Compute the revenues needed to earn the target net income.
2. How many customers are needed to break even? To earn net income of $107,100?
3. Compute net income if the number of customers is 170,000|
Required

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