Please answer all the 4 requirement correctly with good presentation using commas and dollar sign in each figure C. You have the following information about a restaurant opening up in Boston and you are asked to help provide information on pricing. Although there are other factors to consider, you are being asked to base your suggestions on a cost perspective. Owner Investment 2,000,000 Funds borrowed 3,000,000 Food cost 33% Labor cost 35% Other V.C. 10% Building 3,000,000 Furniture and Equipment 1,200,000 Management Salaries 140,000 Other Fixed Costs 200,000 Interest % 6% Depreciation on FF&E 14.29% Depreciation on Building 5% What is the break-even point in dollars? Suppose that the owner wants a 10% ROI after tax. The tax rate is 24%. What is the revenue required to cover operational costs as well as the profit. The restaurant averages 19,598 covers per month. What is the average check of the restaurant using the revenue number from #2 immediately above? This restaurant is only open for lunch and dinner. Lunch makes up 60% of the total covers. The owners believe there should be an 8.00 difference between average lunch check and average dinner check. What is the average check for dinner and what is the average check for lunch?
Please answer all the 4 requirement correctly with good presentation using commas and dollar sign in each figure C. You have the following information about a restaurant opening up in Boston and you are asked to help provide information on pricing. Although there are other factors to consider, you are being asked to base your suggestions on a cost perspective. Owner Investment 2,000,000 Funds borrowed 3,000,000 Food cost 33% Labor cost 35% Other V.C. 10% Building 3,000,000 Furniture and Equipment 1,200,000 Management Salaries 140,000 Other Fixed Costs 200,000 Interest % 6% Depreciation on FF&E 14.29% Depreciation on Building 5% What is the break-even point in dollars? Suppose that the owner wants a 10% ROI after tax. The tax rate is 24%. What is the revenue required to cover operational costs as well as the profit. The restaurant averages 19,598 covers per month. What is the average check of the restaurant using the revenue number from #2 immediately above? This restaurant is only open for lunch and dinner. Lunch makes up 60% of the total covers. The owners believe there should be an 8.00 difference between average lunch check and average dinner check. What is the average check for dinner and what is the average check for lunch?
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
Related questions
Question
Please answer all the 4 requirement correctly with good presentation using commas and dollar sign in each figure
C. You have the following information about a restaurant opening up in Boston and you are asked to help provide information on pricing. Although there are other factors to consider, you are being asked to base your suggestions on a cost perspective.
Owner Investment 2,000,000
Funds borrowed 3,000,000
Food cost 33%
Labor cost 35%
Other V.C. 10%
Building 3,000,000
Furniture and Equipment 1,200,000
Management Salaries 140,000
Other Fixed Costs 200,000
Interest % 6%
Depreciation on Building 5%
- What is the break-even point in dollars?
- Suppose that the owner wants a 10%
ROI after tax. The tax rate is 24%. What is the revenue required to cover operational costs as well as the profit. - The restaurant averages 19,598 covers per month. What is the average check of the restaurant using the revenue number from #2 immediately above?
- This restaurant is only open for lunch and dinner. Lunch makes up 60% of the total covers. The owners believe there should be an 8.00 difference between average lunch check and average dinner check. What is the average check for dinner and what is the average check for lunch?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 7 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education