Please answer all the 4 requirement correctly with good presentation using commas and dollar sign in each figure C. You have the following information about a restaurant opening up in Boston and you are asked to help provide information on pricing. Although there are other factors to consider, you are being asked to base your suggestions on a cost perspective. Owner Investment 2,000,000 Funds borrowed 3,000,000 Food cost 33% Labor cost 35% Other V.C. 10% Building 3,000,000 Furniture and Equipment 1,200,000 Management Salaries 140,000 Other Fixed Costs 200,000 Interest % 6% Depreciation on FF&E 14.29% Depreciation on Building 5% What is the break-even point in dollars? Suppose that the owner wants a 10% ROI after tax. The tax rate is 24%. What is the revenue required to cover operational costs as well as the profit. The restaurant averages 19,598 covers per month. What is the average check of the restaurant using the revenue number from #2 immediately above? This restaurant is only open for lunch and dinner. Lunch makes up 60% of the total covers. The owners believe there should be an 8.00 difference between average lunch check and average dinner check. What is the average check for dinner and what is the average check for lunch?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

See similar textbooks

Related questions

Question

Please answer all the 4 requirement correctly with good presentation using commas and dollar sign in each figure

C. You have the following information about a restaurant opening up in Boston and you are asked to help provide information on pricing. Although there are other factors to consider, you are being asked to base your suggestions on a cost perspective.

Owner Investment 2,000,000

Funds borrowed 3,000,000

Food cost 33%

Labor cost 35%

Other V.C. 10%

Building 3,000,000

Furniture and Equipment 1,200,000

Management Salaries 140,000

Other Fixed Costs 200,000

Interest % 6%

Depreciation on FF&E 14.29%

Depreciation on Building 5%

What is the break-even point in dollars?
Suppose that the owner wants a 10% ROI after tax. The tax rate is 24%. What is the revenue required to cover operational costs as well as the profit.
The restaurant averages 19,598 covers per month. What is the average check of the restaurant using the revenue number from #2 immediately above?
This restaurant is only open for lunch and dinner. Lunch makes up 60% of the total covers. The owners believe there should be an 8.00 difference between average lunch check and average dinner check. What is the average check for dinner and what is the average check for lunch?

Expert Solution