EX6-1: Bottom-up PricingYou own a 132-seat restaurant, which opens 6 days a week for 52 weeks of the year.The seat turnover per day is 2.2.You have the following projections about the costs for next year. You require an ROE of 18% onyour $240,000 in a restaurantTax rate: 28%Furniture & Equipment: Book value = $112,000, Depreciation - 20% per yearBank loan: Balance owed: $50,000, interest rate: 12%Insurance: $4,500 Licenses: $3,200Maintenance: $1,200Salary: $48,900Cost of sales (food & beverage): 35% of sales revenueWage: 33% of sales revenueOther variable costs: 8% of sales revenueUtilities: $12,600Calculate the sales revenue and average check required to cover all restaurants expenses andprofits for the next year.*Show your work in the cells for full credits.RevenueVariable costContribution margin- Fixed costOperating income.- Tax

Variable costs are those costs which changes, with every one unit change. Fixed costs are those…

You own a 132-seat restaurant, which opens 6 days a week for 52 weeks of the year. The seat turnover per day is 2.2. You have the following projections about the costs for next year. You require an ROE of 18% on your $240,000 in a restaurant Tax rate: 28% Furniture & Equipment: Book value = $112,000, Depreciation - 20% per year Bank loan: Balance owed: $50,000, interest rate: 12% Insurance: $4,500 Licenses: $3,200 Utilities: $12,600 Maintenance: $1,200 Salary: $48,900 Cost of sales (food & beverage): 35% of sales revenue Wage: 33% of sales revenue Other variable costs: 8% of sales revenue Calculate the sales revenue and average check required to cover all restaurants expenses and profits for the next year. Show your work in the cells for full credits.

You own a 132-seat restaurant, which opens 6 days a week for 52 weeks of the year. The seat turnover per day is 2.2. You have the following projections about the costs for next year. You require an ROE of 18% on your $240,000 in a restaurant Tax rate: 28% Furniture & Equipment: Book value = $112,000, Depreciation - 20% per year Bank loan: Balance owed: $50,000, interest rate: 12% Insurance: $4,500 Licenses: $3,200 Utilities: $12,600 Maintenance: $1,200 Salary: $48,900 Cost of sales (food & beverage): 35% of sales revenue Wage: 33% of sales revenue Other variable costs: 8% of sales revenue Calculate the sales revenue and average check required to cover all restaurants expenses and profits for the next year. Show your work in the cells for full credits.

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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