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 fixe

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
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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

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