CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable Costs for each customer is $3.50. The income tax rate is 36%, Target net income is $117,600. Jau Compute the revenues needed to earn the target net income. How many customers are needed to break even? To earn net income of $117,600? Compute net income if the number of customers is 170,000. 1. 2. 162 3.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours a
day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee
to full meals. The average sales check per customer is $8.75. The average cost of food and other variable
Costs for each customer is $3.50. The income tax rate is 36%, Target net income is $117,600.
Jau
Compute the revenues needed to earn the target net income.
How many customers are needed to break even? To earn net income of $117,600?
Compute net income if the number of customers is 170,000.
1.
2.
162
3.
Transcribed Image Text:CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable Costs for each customer is $3.50. The income tax rate is 36%, Target net income is $117,600. Jau Compute the revenues needed to earn the target net income. How many customers are needed to break even? To earn net income of $117,600? Compute net income if the number of customers is 170,000. 1. 2. 162 3.
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