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

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

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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