Cost-Volume Profit Analysis Guiseppe is operating a restaurant. Fixed costs are 45,000 $. Average cost of...

Cost-Volume Profit Analysis

Guiseppe is operating a restaurant. Fixed costs are 45,000 $. Average cost of food and other variable costs are 3.20 $. The average bill is 8$. The income tax rate is 30 %, the net target profit is 105,000 $ (i.e. after income tax).

a) How many customers are needed to earn a net target profit of 105,000 $ and to break even? (6 points)

b) Calculate the net target profit if you have 15,000 customers! (3 points) c) What is the normal-markup percentage for an average bill given 15,000

customers?
d) Calculate the operating leverage for 15,000 customers.

Expert Solution

jeff jeffy answered 2 years ago

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