In: Accounting
The Red Fusion, a local Thai restaurant, expects sales to be $
300 comma 000 in January. Its average customer restaurant bill is $
25. Only 40 % of the restaurant bills are paid with cash; 30 % are
paid with credit cards and 30 % with debit cards. The transaction
fees charged by the credit and debit card issuers are as
follows:
Credit cards: $ 0.25 per transaction + 5 % of the amount
charged
Debit cards: $ 0.45 per transaction + 4 % of the amount
charged
How much of the total sales revenue is expected to be paid in
cash?
2.
How many customer transactions does the company expect in
January?
3.
How much of the total sales revenue is expected to be paid with
credit cards?
4.
How many customer transactions will be paid for by customers using
credit cards?
5.
When budgeting for January's operating expenses, how much should
the restaurant expect to incur in credit card transaction
fees?
6.
How much of the total sales revenue is expected to be paid with
debit cards?
7.
How many customer transactions will be paid for by customers using
debit cards?
8.
When budgeting for January's operating expenses, how much should
the restaurant expect to incur in debit card transaction
fees?
9.
How much money will be deposited in the restaurant's bank account
during the month of January related to credit and debit card
sales? Assume the credit and debit card issuers deposit the funds
on the same day the transactions occur at the restaurant (there is
no processing delay).
10.
What is the total amount of money that the restaurant expects to
deposit in its bank account during the month of January from cash,
credit card, and debit card sales? Again assume the credit and
debit card issuers deposit the funds on the same day that the
transaction occurs.
Amount charged means amount charged by the Red Fusion from customers.
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