Question: 5-16 Good Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
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Accounting Question 5-16

Question: 5-16
Good Times Restaurant estimates the following
costs for next year: fixed costs $120,000,
variable cost per meal $15. If they want to earn a
profit of $90,000 and charge $35 per meal,
calculate the required number of meals.
Transcribed Image Text:Question: 5-16 Good Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals.
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