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

Question:

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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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