End of Chapter: Cost-Volume-Profit AnalysisAverage revenue, including beverages and dessertsAverage cost of foodChef's and dishwasher's salariesRent (premises, equipment)Cleaning (linen, premises)Replacement of dishes, cutlery, glassesUtilities, advertising, telephoneRequirements$45155,1004,0008003002,300per mealper mealper monthper monthper monthper monthper month1. Compute the annual breakeven number of meals and sales revenue forthe restaurant. Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, theyvisited Thailand. Linda, a professional chef, was impressed with the cookingmethods and the spices used in Thai food. Bartlesville does not have a Thairestaurant, and the Homs are contemplating opening one. Linda wouldsupervise the cooking, and Steve would leave his current job to be the maîtred'. The restaurant would serve dinner Tuesday through Saturday.Steve has noticed a restaurant for lease. The restaurant has seven tables, each ofwhich can seat four. Tables can be moved together for a large party. Linda isplanning on using each table twice each evening, and the restaurant will beopen 50 weeks per year.The Homs have drawn up the following estimates:Average revenue, including beverages and dessertsAverage cost of foodChef's and dishwasher's salariesRent (premises, equipment)$45155,1004,000per mealper mealper monthper month

Lets understand the basics.Break-even point is a situation of no profit and no loss. The total cost…

Rent (premises, equipment) Cleaning (linen, premises) Replacement of dishes, cutlery, glasses Utilities, advertising, telephone Requirements 4,000 800 300 2,300 per month per month per month per month 1. Compute the annual breakeven number of meals and sales revenue for the restaurant.

Rent (premises, equipment) Cleaning (linen, premises) Replacement of dishes, cutlery, glasses Utilities, advertising, telephone Requirements 4,000 800 300 2,300 per month per month per month per month 1. Compute the annual breakeven number of meals and sales revenue for the restaurant.

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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