### Calculate the average check per meal period

Assignment Help Accounting Basics
##### Reference no: EM131034589

An owner invested \$180,000 in a new family-style restaurant, of which \$160,000 was immediately used to purchase equipment and \$20,000 was retained for working cash. Estimates for the first year of business are as follows:

Menu selling prices to be established to give a markup of 150 percent over cost of food sold Variable wages, 28 percent of revenue

Fixed wages, \$51,600
Other variable costs, 7 percent of revenue
Rent, \$36,000
Insurance, \$4,800
Depreciation on equipment, 20 percent
Return on investment desired, 12 percent
Income tax rate, 30 percent

The restaurant has 60 seats and is open 5 days a week for lunch and dinner only. Lunch revenue is expected to be 40 percent of total volume with 2 seat turnovers. Dinner revenue will be 60 percent of total volume, with 1.25 turnovers. Calculate the average check per meal period that will cover all costs, including desired return on investment.

#### Questions Cloud

 Explain the principles relating to contract law : Business law - BBAL201 - Identify the facts of the case and Explain the relevant law relating to the case Compute laskowski free cash flow : Laskowski has an aggressive growth plan, which will require significant investments in plant and equipment over the next several years. Preliminary plans call for an investment of over \$500,000 in the next year. Develop a flight operations map : Develop a flight operations map that still serves each of the nine cities, but maximizes the company's profit per passenger Internationalization presents to logistics management : Identify challenges that internationalization presents to logistics management. And discuss the drivers and logistics implications of internationalization. Calculate the average check per meal period : The restaurant has 60 seats and is open 5 days a week for lunch and dinner only. Lunch revenue is expected to be 40 percent of total volume with 2 seat turnovers. Dinner revenue will be 60 percent of total volume, with 1.25 turnovers. Calculate th.. Analyse the relationship between urban form and government : Corporate Sustainability Management (BBMM602) - Analyse the information presented and conceptualise the state of environmental planning in Australia. What it means to take audience-centered approach : List each step in the Three-Step Process AND describe what is contained in each step. List and describe at least three specific steps you would take to ensure you communicate effectively with non-native English speakers. Describe what it means to tak.. Identify their leadership styles characteristics and traits : Conduct thorough research on two to four leaders who interest you. After conducting research identify their leadership styles characteristics and traits. After developing the two page written summary write a one page paper that explains why you chose.. Contrast the various billing and coding regulations : Compare and contrast the various billing and coding regulations which ones apply to prospective payment systems. Reflect on how these regulations affect reimbursement in a healthcare organization.

### Write a Review

#### Office style existing stock by greenacres

Greenacres, a firm of estate agents, decides to give its image a face-lift by refurbishing its reception area. Greenacres places the contract with a local company, Office Style Ltd, which agrees to supply the following items: (a) six easy chairs a..

#### Journal entry-income tax expense-deferred income taxes

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2010, assuming an income tax rate of 40% for all years.

#### Comment on the business economic, financial

Using the information you have learned from this course about various risks, identify the accounts or transactions that would be considered to have a significant risk of material misstatement.

#### Compute ending inventory and cost of goods sold

Compute ending inventory and cost of goods sold, using each of the methods - Average cost

#### What were the actual hours worked during the month rounded

information on westcottcompanys direct labor costs for a recent month followsstandard direct labor

#### Present the value of annuities

Harvey Alexander, an all-league professional football player, has just declared free agency. Two teams, the San Francisco 49ers and the Dallas Cowboys, have made Harvey the following offers to obtain his services.

#### The quoted market price per share of common stock

On January 1, 2009, as a form of executive compensation,

#### Build an excel spreadsheet to construct a multi step

Build an Excel spreadsheet to construct a multi step income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for the year 2013.

#### How should brooks classify loan on its december

How should Brooks classify this loan on its December 31, 2003 balance sheet? What would Brooks list as interest expense on its 2003 income statement?

#### If you order new equipment for delivery next month

If you order new equipment for delivery next month. as a result you would expect to see which of the following on this months balance sheet?

#### Cortez art gallery is adding to its existing buildings at a

cortez art gallery is adding to its existing buildings at a cost of 2 million. the gallery expects to bring in

#### Garcia orchards amp processing company has been taking

garcia orchards amp processing company has been taking bidsfor three new tractors. goldbaum equipment has made an offer