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.
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- 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.CVP analysis, income taxes. The Express Banquet has two restaurants that are open 24-hours aday. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of coffeeto full meals. The average sales check per customer is $8.50. The average cost of food and other variablecosts for each customer is $3.40. The income tax rate is 30%. Target net income is $107,100.Required 1. Compute the revenues needed to earn the target net income.2. How many customers are needed to break even? To earn net income of $107,100?3. Compute net income if the number of customers is 170,000.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 cupm 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 Requirements 1. Compute the revenues needed to earn the target net income. 2. How many customers are needed to break even? To earn net income of $117,600? 3. Compute net income if the number of customers is 170,000. Requirement 1. Compute the revenues needed to eam the target net income. Using the equation method, select the basic formula used to compute the revenues needed to eam the target net income. Target net income 1-Tax rate Revenues Variable costs Fixed costs 1,023,750 The revenues needed to earn the target net income is $ Requirement 2. How many customers are needed to break even? To earn net income of…
- Record 1-2-3 is a top-selling electronic spreadsheet product. Record is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Record 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Record 1-2-3 5.0 are $13,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Read the requirements. Requirement 1. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? The breakeven point is units for new customers and units for upgrade customers. Requirements 1. 2. 3. What is the Record 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? If the sales mix is attained, what is the…The Swift Feast has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $450,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rate is 30%. Target net income is $105,000. Requirements 1. Compute the revenues needed to eam the target net income. 2. How many customers are needed to break even? To eam net income of $105,000? 3. Compute net income if the number of customers is 145,000. Requirement 1. Compute the revenues needed to eam the target net income. Using the equation method, select the basic formula used to compute the revenues needed to earn the target net income.3. The Swift Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $456,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $9.50. The average cost of food and other variable costs for each customer is $3.80. The income tax rate is 30%. Target net income is $159,600. Compute the revenues needed to earn the target net income. b. How many customers are needed to break even? To earn net income of S159,600? c. Compute net income if the number of customers is 145,000.
- Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price $ 128.00 per service Variable costs 90.00 per service Fixed costs 124,982 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: How many cleaning services must Cruse Cleaning sell in a year to break even? How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $34,086 after taxes?bed Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $127.00 per service 89.00 per service 119,548 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? ook b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $32,604 after taxes? a Required sales in a year to break even int rences b. Required sales in a year to earn an annual operating profit of $32,604 after taxes: cleaning services cleaning servicesCVP analysis, income taxes. Brooke Motors is a small car dealership. On average, it sells a car for$27,000, which it purchases from the manufacturer for $23,000. Each month, Brooke Motors pays $48,200 inrent and utilities and $68,000 for salespeople’s salaries. In addition to their salaries, salespeople are paid acommission of $600 for each car they sell. Brooke Motors also spends $13,000 each month for local advertisements.Its tax rate is 40%.Required 1. How many cars must Brooke Motors sell each month to break even?2. Brooke Motors has a target monthly net income of $51,000. What is its target monthly operatingincome? How many cars must be sold each month to reach the target monthly net income of $51,000?
- 1. You have a small business selling cans of HuntBi, a reasonably nasty-tasting energy drink. You sell each can of HuntBi for $12.00. Each can costs you $5.00 to purchase from the manufacturer. You pay your salesperson a 20% commission on all sales on top of a base salary of $1,800 per month. Your rent is $1,000 per month. Other miscellaneous costs (insurance, utilities, etc.) average $512 per month. You are pretty sure you can sell 1,000 cans per month at the $12.00 price point. A. How many cans do you need to sell to breakeven each month (round up to the nearest whole can)? B. How much monthly operating income will you have if you sell 1,000 cans per month? C. If tax rates are 24%, how much net income will you make if you sell 1,000 cans? You are considering offering a $1.00 off coupon for each can to increase sales. You think sales will increase to 1,500 cans per month (assuming each can will be purchased with a coupon). A fixed coupon processing fee of $288 will be incurred each…The LeeAnn Family Restaurant is open 24 hours a day and serves breakfast, lunch, and dinner. The owner of the business has determined that fixed costs are $24,000 per month. Variable costs are estimated at $9.60 per meal. The average total bill (excluding tax and tip) is $12 per customer. Assume that fixed costs increase to $30,000. How many additional meals must be served if the restaurant wishes to earn the same profit?Stork Enterprises delivers care packages for special occasions. They charge $45 for a small package, and $80 for a large package. The sales tax rate is 6%. During the month of May, Stork delivers 38 small packages and 22 large packages. A. What is the total tax charged to the customer per small package? What is the overall charge per small package? B. What is the total tax charged to the customer per large package? What is the overall charge per large package? C. How much sales tax liability does Stork Enterprises have for the month of May? D. What accounts are used to recognize this tax situation for the month of May? E. When Stork remits payment to the sales tax governing body, what happens to the sales tax liability?