End of Chapter: Cost-Volume-Profit AnalysisAverage revenue, including beverages and dessertsAverage cost of foodChef's and dishwasher's salariesRent (premises, equipment)Cleaning (linen, premises)Replacement of dishes, cutlery, glassesUtilities, advertising, telephoneRequirements$45155,1004,0008003002,300per mealper mealper monthper monthper monthper monthper month1. Compute the annual breakeven number of meals and sales revenue forthe restaurant. Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, theyvisited Thailand. Linda, a professional chef, was impressed with the cookingmethods and the spices used in Thai food. Bartlesville does not have a Thairestaurant, and the Homs are contemplating opening one. Linda wouldsupervise the cooking, and Steve would leave his current job to be the maîtred'. The restaurant would serve dinner Tuesday through Saturday.Steve has noticed a restaurant for lease. The restaurant has seven tables, each ofwhich can seat four. Tables can be moved together for a large party. Linda isplanning on using each table twice each evening, and the restaurant will beopen 50 weeks per year.The Homs have drawn up the following estimates:Average revenue, including beverages and dessertsAverage cost of foodChef's and dishwasher's salariesRent (premises, equipment)$45155,1004,000per mealper mealper monthper month

Lets understand the basics.Break-even point is a situation of no profit and no loss. The total cost…

Rent (premises, equipment) Cleaning (linen, premises) Replacement of dishes, cutlery, glasses Utilities, advertising, telephone Requirements 4,000 800 300 2,300 per month per month per month per month 1. Compute the annual breakeven number of meals and sales revenue for the restaurant.

Rent (premises, equipment) Cleaning (linen, premises) Replacement of dishes, cutlery, glasses Utilities, advertising, telephone Requirements 4,000 800 300 2,300 per month per month per month per month 1. Compute the annual breakeven number of meals and sales revenue for the restaurant.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 64DNC

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Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and the spices used in Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and Steve would leave his current job to be the maître d’. The restaurant would serve dinner Tuesday through Saturday. Steve has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a large party. Linda is planning two seatings per evening, and the restaurant will be open 50 weeks per year. The Homs have drawn up the following estimates: Requirements Compute the annual breakeven number of meals and sales revenue for the restaurant. Compute the number of meals and the amount of sales revenue needed to earn operating income of $75,600 for the year. How many meals must the Homs serve each night to earn…
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