Given the below assumptions, what is the level of sales required for a two department (food and beverage) restaurant to achieve a 12% ROI on an investment of $8,000,000? Food sales are forecasted at $1,500,000 Food costs amount to $500,000 Total sales amount to $2,000,000 Beverage generate the remainder of sales with a variable cost of 25% The restaurant's tax rate is 30% Annual fixed costs amount to $1,000,000

Given the below assumptions, what is the level of sales required for a two department (food and beverage) restaurant to achieve a 12% ROI on an investment of $8,000,000? Food sales are forecasted at $1,500,000 Food costs amount to $500,000 Total sales amount to $2,000,000 Beverage generate the remainder of sales with a variable cost of 25% The restaurant's tax rate is 30% Annual fixed costs amount to $1,000,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 6P

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