A 100-seat restaurant with average daily turnover of 2 and average check of $15 opens 365 days a year. Food cost is 38% of revenue and other variable costs is 22% of the revenue. Fixed costs are $220,000 a year. a. How much is the variable cost per customer? b. How many customers does the restaurant have to serve if the owner wants a $200,000 operating income? c. The owner is not satisfied with the operating income and wants to improve it to $250,000 by increasing the average check to $17. To avoid customers deflecting to other restaurants, the owner will spend an additional $30,000 on advertising (additional fixed cost). The owner also wants to add $20,000 her own salary (another additional fixed cost). Assuming the variable costs per customer do not change (the same as in question a.), how many customers the restaurant needs to serve now?

A: Definition: Balance sheet: To Know the financial position of the business balance sheet is prepared.…

A: Equivalent units: This is one of the processes costing methods, under this method the uncompleted…

A: Direct material rate per unit = $16,000/2000 = $8 per unit Direct Labour rate per unit =…

A: Cost of Car is $52000 Interest rate is 6% Time period is 5 years Monthly Interest rate "rate" is…

A: Capital Asset Pricing Model (CAPM):It defines the relationship of an asset’s expected return with…

A: With the probability based case, the expected NPV is the weighted average of the NPV of different…

A: As posted multiple independent questions we are answering only first question kindly repost the…

A: Yes the answer is writtern in own words. Please find a alternate answer below

A: Multi-step income statement: It is the presentation of a normal income statement in a more detailed…

A: Present value:Present value is popularly known in short as PV. It is a concept of accounting that…

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

A: A payroll journal is a written record of accounting transactions pertaining to payroll. Payroll…

A: Future value of a present amount With present value (PV), interest rate (r) and period (n), the…

A: The direct manufacturing labor hours are required to be calculated considering the 85% average time…

A: 1. Allowance for doubtful debt - Allowance for doubtful debt is the account that a company creates…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

A: We shall answer the first question since the exact one was not specified. Please resubmit a new…

A: Beneficiary/ Fiduciary Trustee  A trust has a beneficiary and a trustee. The individual who is the…

A: Stockholder’s Equity is the amount of remaining assets if all the liabilities in the business are…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

A: The debtors issues an instrument instead of cash said to be note receivable. In case note is paid…

A: Workings: Calculation of variable cost per unit: Total baskets produced = 2000 direct materials cost…

A: In market leader in the product States something regarding the competitions and make a different…

A:

A: The closing entries refer to the journal entries passed at the end of the reporting period to…

A: Comment- Multiple Questions Asked. Utilization Rate- It refers to the performance pointer which is…

A: Prepare a statement of retained earnings for the year ended December 31, 2018 assuming net profit…

A: Common size income statement is used for vertical analysis wherein each item in the income statement…