Please help me. Thankyou. A 100-seat restaurant with average daily turnover of 2 andaverage check of $15 opens 365 days a year. Food cost is 38%of revenue and other variable costs is 22% of the revenue.Fixed costs are $220,000 a year.a. How much is the variable cost per customer?b. How many customers does the restaurant have to serve ifthe owner wants a $200,000 operating income?c. The owner is not satisfied with the operating income andwants to improve it to $250,000 by increasing the averagecheck to $17. To avoid customers deflecting to otherrestaurants, the owner will spend an additional $30,000 onadvertising (additional fixed cost). The owner also wants toadd $20,000 her own salary (another additional fixed cost).Assuming the variable costs per customer do not change (thesame as in question a.), how many customers the restaurantneeds to serve now?

Answered: Image /qna-images/answer/27e6ae2e-6812-4f3c-812d-3cf06765371e.jpg

Answered: A 100-seat restaurant with average…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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