The kopitiam restaurant is open 24 hours a day and serves breakfast,lunch ,and dinner.The owner of the business has determined that fixed costs are RM24,000 per month.variable costs are estimated at RM9.60 per meal.The average total bill (excluding tax and tip) is $15 per customer. a) compute the break -even point in meals and volume in dollars. b) compute the number of meals that must be served if leeAnn family restaurant wishes to earn a profit of RM10,000
The kopitiam restaurant is open 24 hours a day and serves breakfast,lunch ,and dinner.The owner of the business has determined that fixed costs are RM24,000 per month.variable costs are estimated at RM9.60 per meal.The average total bill (excluding tax and tip) is $15 per customer. a) compute the break -even point in meals and volume in dollars. b) compute the number of meals that must be served if leeAnn family restaurant wishes to earn a profit of RM10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The kopitiam restaurant is open 24 hours a day and serves breakfast,lunch ,and dinner.The owner of the business has determined that fixed costs are RM24,000 per month.variable costs are estimated at RM9.60 per meal.The average total bill (excluding tax and tip) is $15 per customer.
a) compute the break -even point in meals and volume in dollars.
b) compute the number of meals that must be served if leeAnn family restaurant wishes to earn a profit of RM10,000
c) Assume that fixed costs increase to RM30,000. How many additional meals must be served if the restaurant wishes to earn the same profit?
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