A new restaurant is ready to open for business. It is estimated that the food cost(variable cost) will be 40.96% of sales, while fixed cost will be $450,000. The firstyear's sales estimates are $1,262,605. Calculate the firm's operating breakeven levelof sales. Answer to 2 decimal places.

Firm's operating breakeven level of sales will be calculated by following formula:-Firm's…

Answered: A new restaurant is ready to open for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Carla Vista Sales Company has sales of $1,250,000. If the company’s management expects sales to grow 4.50 percent annually, how long will it be before sales double? Use financial calculator to solve this problem. (Round answer to 0 decimal places, e.g. 20.) Time needed to double its sales
PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS (Take pictures) Company X, S.A.'s current sales are 12.5 million. An increase of 5% is estimated for next year, and its uncollectible accounts will go from the current 1% to 1.5%. What is the change in profit due to this customer behavior? A) 1,500 B) 3,000 C) 4,500 D) 5,000 (Choose a option)
PB&J Eatery has a monthly target operating income of $8,400. Variable expenses are 60% of sales and monthly fixed expenses are $12,600. What is PB&J Eatery's operating leverage factor at the target level of operating income? Round answer to one decimal place. Answer:
Calculate the operating profit/loss at the end of the first six months of operations.
A company currently sell goods of Tk. 6,00,000 with a terms of net 30 days. Its average collection period is 45 days. The company is planning to increase its sales by extending the credit period to 60 days on all sales that would help increasing sales by 15%. After the changes in credit policy the average collection period is expected to be 75 days. Variable cost per unit is Tk. 80 and selling price is Tk. 100 per unit. The company’s required rate of return on its investment in receivables is 20%. Should the company extend its credit period?
A 99 - room hotel's fixed cost is 1 million per year and the variable cost is 40% of revenue. If 75% of the revenue is from the rooms division, what is the breakeven RevPAR? (assume the hotel opens 365 days per year)
Zara sells 15% of its fast fashion items at a 15% markdown. If the value of each item is $35 and the cost to make each item is $16, then what is the productivity ratio if Zara sells 1,500 units? (Enter your response rounded to two decimal places.)
Suppose that Dunn Industries has annual sales of $2.3 million, cost of goods sold of $1,650,000, average inventories of $1,116,000, and average accounts receivable of $750,000. Assume that all of Dunn’s sales are on credit.What will be the firm’s operating cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Here are next year's projections for a firm you are valuing: Sales are expected to be $100 million. Gross margin is forecasted to be 50%. COGS and SG&A together are $90 million, of which depreciation is $10 million. Industrial customers (60% of sales) will take 100 days to pay their bills. Retail chains (40% of sales) make cash sales. The firm expects to turn over its inventory every 60 days. The firm will pay its bills in 20 days. Using the information provided above, What is next year’s inventory projected to be? [ Select ] What should be the average collection period (days) and next year’s accounts receivable? [ Select ]
Boss Enterprises currently sells its products for $30 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $126,000 per year. What is the breakeven point in units at the current selling price? O A. 18 units ов. 10,500 units O C. 3,000 units O D. 7,000 units
Please make in excel and take screenshots. A Pumpkin Pie Manufacturing Company pays on the tenth day after purchase. The average collection period is 35 days, and the average inventory age is based on inventory turnover of 9 times per year. The company spends about $16 million on operating cycle investments, and is considering a plan that would lengthen its average payable period by 20 days. If the company pays 12% per year on its investment of resources, what annual savings-if any-can it realize with this plan? Assume there is no discount for early payment of accounts payable and a year has 360 days.
Zed Inc., has the following details for the year ending 31st March, 2019 : Sales =24,000 units @ 200 per unit; P/V Ratio 25% and Break-even Point 50% of sales. Calculate: Fixed cost for the year Profit earned for the year Units to be sold to earn a target net profit of 11,00,000 for a year

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40.96% of sales, while fixed cost will be $450,000. The first year's sales estimates are $1,262,605. Calculate the firm's operating breakeven level of sales. Answer to 2 decimal places.