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)?