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Problem 20 Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant from the information below. Food Beverage Total Sales $240,000 000'091 192,000 VC %00 CM 0000 112,000 208,000 52% FC 000ʻ96 IBIT 000's

Problem 20 Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant from the information below. Food Beverage Total Sales $240,000 000'091 192,000 VC %00 CM 0000 112,000 208,000 52% FC 000ʻ96 IBIT 000's

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Problem 20** **Objective:** Use CVP (Cost-Volume-Profit) and compute the sales revenue necessary to achieve an EBIT (Earnings Before Interest and Taxes) of $162,000 for a multi-product restaurant from the information below. **Data Provided:** | | Total | Beverage | Food | |------------------------|----------|----------|---------| | Sales | $400,000 | $160,000 | $240,000 | | Variable Costs (VC) | $192,000 | $48,000 | $144,000 | | Contribution Margin (CM)| $208,000 | $112,000 | $96,000 | | Fixed Costs (FC) | | | $150,000 | | EBIT | | | $58,000 | **Proportions:** - Sales: - Beverage: 40% - Food: 60% - Contribution Margin Ratio: - Beverage: 48% - Food: 52% **Instructions:** Using the table and information above, calculate the required sales revenue to achieve the specified EBIT, considering the contribution margin and fixed costs for each product category within the restaurant.
Transcribed Image Text:**Problem 20** **Objective:** Use CVP (Cost-Volume-Profit) and compute the sales revenue necessary to achieve an EBIT (Earnings Before Interest and Taxes) of $162,000 for a multi-product restaurant from the information below. **Data Provided:** | | Total | Beverage | Food | |------------------------|----------|----------|---------| | Sales | $400,000 | $160,000 | $240,000 | | Variable Costs (VC) | $192,000 | $48,000 | $144,000 | | Contribution Margin (CM)| $208,000 | $112,000 | $96,000 | | Fixed Costs (FC) | | | $150,000 | | EBIT | | | $58,000 | **Proportions:** - Sales: - Beverage: 40% - Food: 60% - Contribution Margin Ratio: - Beverage: 48% - Food: 52% **Instructions:** Using the table and information above, calculate the required sales revenue to achieve the specified EBIT, considering the contribution margin and fixed costs for each product category within the restaurant.
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