What is the level of sales needed to achieve a 10% return on an investment of $10,000,000 for a restaurant (the restaurant has the following main products it sells: food, beverage and gift shop items) and cover all costs? Note the following information: Food generates 70% of sales and the food cost percent is 30. Beverages generate 25% of sales with a CMR of .82. Gift store items account for the rest of the sales with a CMR of .8. The fixed costs are $1,500,000 annually. What is the level of sales needed $3,000,000 $3,571,428.57 $5,434,782.61 $5,000,000
What is the level of sales needed to achieve a 10% return on an investment of $10,000,000 for a restaurant (the restaurant has the following main products it sells: food, beverage and gift shop items) and cover all costs? Note the following information: Food generates 70% of sales and the food cost percent is 30. Beverages generate 25% of sales with a CMR of .82. Gift store items account for the rest of the sales with a CMR of .8. The fixed costs are $1,500,000 annually. What is the level of sales needed $3,000,000 $3,571,428.57 $5,434,782.61 $5,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the level of sales needed to achieve a 10%
Note the following information:
Food generates 70% of sales and the food cost percent is 30.
Beverages generate 25% of sales with a CMR of .82.
Gift store items account for the rest of the sales with a CMR of .8.
The fixed costs are $1,500,000 annually.
What is the level of sales needed
$3,000,000
$3,571,428.57
$5,434,782.61
$5,000,000
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