Q2. The following information is from the records of Daphne's Restaurant: Sales $800,000 Variable cost $342,400 Fixed cost $345,600 Assume that sales volume equals 40,000 covers: a. Calculate profit. b. Calculate average dollar sale. c. Calculate dollar sales required to earn a profit of $125,000, assuming variable rate does not change.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q2. The following information is from the records of Daphne's Restaurant:
Sales $800,000
Variable cost $342,400
Fixed cost $345,600
Assume that sales volume equals 40,000 covers: a.
Calculate profit.
b. Calculate average dollar sale.
c. Calculate dollar sales required to earn a profit of $125,000, assuming variable rate does not
change.
Transcribed Image Text:Q2. The following information is from the records of Daphne's Restaurant: Sales $800,000 Variable cost $342,400 Fixed cost $345,600 Assume that sales volume equals 40,000 covers: a. Calculate profit. b. Calculate average dollar sale. c. Calculate dollar sales required to earn a profit of $125,000, assuming variable rate does not change.
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