The Express Banquet has two restraunts that are open 24 hrs a day. Fixed costs for the two restraunts together total $459,000 pr year. Service varies from a cup of coffee to a full meal. The average sales check per customer is $8.50. The average cost of food and other variable costs for each customer is $3.40. The income tax rate is 30%. Target net income is 107,100.
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.