A restaurant with an average check of $14 per guest has the following average monthly figures: Sales revenue $700,000 Variable costs 434,000 Fixed costs 168,000 a

Accounting Nov 13, 2020

A restaurant with an average check of $14 per guest has the following average monthly figures:

Sales revenue $700,000

Variable costs 434,000

Fixed costs 168,000

a. What is breakeven sales revenue?

b. If actual sales revenue was $640,000, what would the restaurant's operating income be?

c. If actual sales revenue was $640,000, how many fewer customers per month would be served than at the forecasted sales revenue level of $700,000? The average check remains at $14.

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