Given the below assumptions, what is thelevel of sales required for a twodepartment (food and beverage) restaurantto achieve a 12% ROI on an investment of$8,000,000?Food sales are forecasted at $1,500,000Food costs amount to $500,000Total sales amount to $2,000,000Beverage generate the remainder of saleswith a variable cost of 25%The restaurant's tax rate is 30%Annual fixed costs amount to $1,000,000

The Return on Investment or ROI is a measure of profitability which shows the returns which is…

Answered: Given the below assumptions, what is…

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Given the below assumptions, what is the level of sales required for a two department (food and beverage) restaurant

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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