Question:
A restaurant with an average check of $10 per guest has the following average monthly figures:
|
Sales revenue
|
$500,000
|
|
Variable costs
|
260,000
|
|
Fixed costs
|
160,000
|
a. What is breakeven sales revenue?
b. If actual sales revenue was $440,000, what would the restaurant's operating income be?
c. If actual sales revenue was $440,000, how many fewer customers per month would be served than at the forecasted sales level of $500,000 (average check remains at $10)?