A restaurant has sales of $300,000 during the same period in which its variable costs are $185,300 and its…

A restaurant has sales of $300,000 during the same period in which its variable costs are $185,300 and its…

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A restaurant has sales of $300,000 during the same period
in which its variable costs are
$185,300 and its fixed costs are $103,000. What are the
restaurant’s profits for this period?
2. Using the information from question 1, calculate the
restaurant’s variable rate.
3.A restaurant has a variable rate of 0.584. In one month its
variable costs are $72,487. What should sales be for that
month?
4. What is the contribution rate for a company with a
variable rate of 0.6647
5. Variable rate covers all variable costs. What does the
contribution rate cover?
6. A restaurant has variable costs of $76.244 and fixed costs
of $49,902 for a month. The profit for that month is
$3,870. Calculate the total sales dollars, variable rate,
and contribution rate for this restaurant.
7. If a restaurant has a variable rate of 0.574 and annual
fixed costs of $288,750, what will the profit or loss be on
$650,000 in annual sales?
*Using the information in question 7, what will the profit
or loss be if annual sales are $750,000?
9. What is the annual break-even point in sales for a
restaurant with a variable rate of 0.673 and annual fixed
costs of $187,500? What is the break-even point in
number of customers if the guest check average is
$67.87?
10. If the owner of the restaurant in question 9 wants to make
$20,000 in profit, how many dollars in sales must the
restaurant generate? How many customers does that
represent?

Expert Answer:

Answer rating: 100% (QA)

1 To calculate the restaurant s profits we subtract the total variable costs and fixed costs from the sales Profits Sales Variable Costs Fixed Costs 3
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