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Question - You have the following projections about the costs in a family restaurant for next year. Net income required is 22% on the owner's present investment of $80,000. The income tax rate is 28%. The variable costs breakdown is as follows: food cost 38% of sales revenue, wage cost 34% of sales revenue and other costs 12% of sales revenue. Total fixed costs are $86,900. What sales revenue (in $, round to the nearest integer, no decimals) would the restaurant have to achieve next year in order to acquire the desired net income?
a. $695,903
b. $638,025
c. $1,148,444
d. $114,844
e. $908,084
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