Based on the description below, answer the questions that follow.The manager of a local restaurant spends $8,500 for its monthly fixed cost. Its variable cost is $9 per customer.Determine the amount of its Contribution Margin (CM) to generate the EBT of $6,500. (Do not put "$" or "," in your answer. Put only thenumber. For example put 10000 for $10,000. FYI, the Canvas will put "" automatically by itself. If necessary, round your answer to thenearest dollar.

Answer : Contribution margin to generate desired EBT =Desired EBT + fixed cost Contribution margin…

Answered: ger of a local restaurant spends $8,500…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ger of a local restaurant spends $8,500 for its monthly fixed cost. Its variable co we the amount of its Contribution Margin (CM) to generate the EBT of $6,500. (Do not pu For example put 10000 for $10,000. FYI, the Canvas will put "" automatically by itself. I