What is the operating pro?t for the restaurant per month


Problem

Clockwork is a fast casual restaurant with a modern US cuisine who competes against high-end fast food restaurants and other fast casual restaurants. Clockwork rotates between a breakfast, lunch, and dinner menu. The restaurant has 15,000 transactions per month of which 50% are for dinner and 20% for breakfast. The average check (customer spend) for breakfast/lunch/dinner are $13.25/$15.25/$34.75. The COGS for producing the 3 different daypart meals are $6.15/$9.25/$20.50. The restaurant has a total ?xed cost of $20,000 per month. In their annual income statement they split the fixed cost between the dayparts based on the daypart's share of transactions. What is the operating pro?t for the restaurant per month?

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Financial Accounting: What is the operating pro?t for the restaurant per month
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