CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable costs for each customer is $3.50. The income tax rate is 36%. Target net income is $117,600. Required: Compute the revenues needed to earn the target net income. How many customers are needed to break even? To earn net income of $117,600? Compute net income if the number of customers is 170,000.

CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable costs for each customer is $3.50. The income tax rate is 36%. Target net income is $117,600. Required: Compute the revenues needed to earn the target net income. How many customers are needed to break even? To earn net income of $117,600? Compute net income if the number of customers is 170,000.

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Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

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CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable Costs for each customer is $3.50. The income tax rate is 36%, Target net income is $117,600. Jau Compute the revenues needed to earn the target net income. How many customers are needed to break even? To earn net income of $117,600? Compute net income if the number of customers is 170,000. 1. 2. 162 3.
The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $430,500 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.75. The average cost of food and other variable costs for each customer is $3.50. The income tax rate is 36%. Target net income is $117,600. Q1. Compute the revenues needed to earn the target net income. Q2. How many customers are needed to break even? To earn net income of $117,600? Q3. Compute net income if the number of customers is 170,000.
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