Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant from the information below. Food Beverage Total Sales $240,000 $160,000 $400,000 100% VC 144,000 48,000 192,000 48% CM 96,000 112,000 208,000 52% FC 150,000 IBIT 58,000

Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant from the information below. Food Beverage Total Sales $240,000 $160,000 $400,000 100% VC 144,000 48,000 192,000 48% CM 96,000 112,000 208,000 52% FC 150,000 IBIT 58,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 84PSB

See similar textbooks

Related questions

Q: Compute for Breakeven sales in units. Compute for Breakeven sales in pesos

A: Break-even sales in units is the minimum number of units to sell so that company has no profit nor…

Q: María has 2 “carretas” for selling her products in shopping centers (One “carreta” per location:…

A: Net Present Value (NPV) is the difference between present value of future cash inflows and the…

Q: Refer to the original data, if the lunch and snack expenses increase by 20% due to increasing price…

A: Given in the question: The lunch and snack expenses has been increased by 20% MESRA Kids charge per…

Q: Matthews Distributors is an award winning beverage distributor in the state of lowa. For the current…

A: Net sales = Total sales - Sales discount - Sales return - Sales allowance

Q: Ralston Dairy gathered this data about the two products that it produces: Products Current Sales…

A: Since there is additional cost involved in further sales procedure, the same will be considered…

Q: Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub…

A: Assets turnover ratio is calculated to check the efficiency of the firm. It represents the manner in…

Q: / Assessment Strategies Revenue/Sales Cost of Sales

A: Income Statement The purpose of preparing the income statement is to know know the net income which…

Q: Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub…

A: This question deals with the calculation of sub station's return on assets, profit margin and asset…

Q: The Swift Feast has two restaurants that are open 24 hours a day. Fixed costs for the two…

A: Answer 1) Equation Used: Revenue - Variable Cost - Fixed Cost = Target Net Income / (1 - Tax rate)…

Q: 1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your…

A: Formulas: 1. Average total Assets: = (Beginning + Ending total assets)/ 2 2. Return on assets: =…

Q: A Club has food sales of $4,000,000 and a food cost of 40%. The club's current ratio is 2, its food…

A: Given the following information: A Club has food sales of $4,000,000 and a food cost of 40% Current…

Q: You received the following financial statement from Bok Traders who manufacture replica rugby…

A: The budgeted income statement includes all of the line items found in a typical income statement,…

Q: ping a Gift food service for students. Market research has indicated that customers would be willing…

A: Variable cost refers to the expenses which change with the change in the level of output of a…

Q: Use CVP and compute the rooms sales necessary to achieve a net income of $156,000 for a…

Q: Bigdog Company distributes pet products. Its ABC system has five activities: Activity Area…

A: ABC information to compute the operating income for each customer in April 2020::::: Particulars…

Q: Space Flakes manufactures and sells boxed coconut cookies. The biggest market for these cookies is…

A: 1. As 500 boxes are produced and 400 boxes are sold. Profit statement will be for 400 units.…

Q: As a Milk tea manufacturer company, BobbaTea supplies boba to Gula Hula and BobbaTime. BobbaTea…

A: Meaning of Transfer Pricing : Transfer pricing can be defined as the value which is attached to the…

Q: Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Refer to the information for Petoskey Company from Exercise 8-44. Assume that 20% of theAlanson…

A: Contribution margin is the excess of sales revenue over variable costs in the business. Operating…

Q: Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub…

A: A net profit margin, also known as the net margin, seems to be a percentage of sales that reflects…

Q: The Swift Feast has two restaurants that are open 24 hours a day. Fixed costs for the two…

A: Target income is the income which is set as achievable by the organization in the near future. Break…

Q: Segment data for Felicia’s Fast Food Restaurants for the current year appears below: Cajun…

A: In order to calculate the net effect on net profit from closure of a business segment we need to…

Q: Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub…

Q: Use the following information for problems 9 and 10.0.0os2omle yslgaib ot oli sul9 awolls lobom…

A: Profit margin is the ratio of net income to the net sales.

Q: The Home Style Eats has two restaurants that are open 24 hours a day. Fixed costs for the two…

A: Fixed cost is $430,500. Average sales check per customer is $8.75. Variable cost is $3.50. Income…

Q: Solomon Fruit Drink Company planned to make 200,000 containers of apple juice. It expected to use…

A: * As per Bartleby policy, in case multiple questions are asked then answer first three only. 1.…

Q: The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a…

A: Breakeven sales revenue is that level of sales revenue at which business is recovering its total…

Q: Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub…

A: Return on Assets (ROA): This ratio calculated to understand on how much percentage of profit/gains…

Q: Ralston Dairy gathered this data about the two products that it produces: Current Sales Estimated…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: Use the following information for problems g9 and 10.o.oos 2omle yslgaib of oli sula awolls Isbom…

A: Financial Performance To measure the financial performance of the entity first to calculate the…

Q: SITUATION: Your team will purchase 10,000 kilograms of flour at Php120.00 per kilogram. It will then…

A: The company purchased 10000 kgs of floor for Php 40. They are repacked into a container 1/4th kgs…

Q: Heavenly Dessert processes cocoa beans into cocoa powder at a processing cost of $9,500 per batch.…

A: Processing cost of cocoa beans into cocoa powder which is already incurred is sunk cost and not…

Q: Perform Goal Seek Analysis in Excel, Technique of Model Driven Decision Support System. Using goal…

Q: Media Mogul Inc. is a marketing company that offers a variety of marketing offerings to its…

A: New Revenue recognition model: There are five steps under revenue recognition principle Step 1:…

Q: The Green Valley Restaurant has three operating departments: Café, Bar, and Catering. The new…

A: The question is related to Cost Volume Profit Analysis. The Weighted Average Contribution Margin…

Q: Macee Department Store has three departments, and it conducts advertising campaigns that benefit all…

A: Cost Allocation: It refers to the process of allocating the cost to various objects or event or…

Q: Identify the activity ratio of a computer shop is its Cost of Goods Sold is P12 million and the…

A: Ratio Analysis: Ratio analysis is a process of determining the relationship between accounting…

Q: A hotel’s food department statement shows the following: Food revenue…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Two companies share a market, in which they currently make $5,000,000 each. Both need to determine…

A: Let's refer to the two corporations as A and B. If neither advertises, they will each receive…

Q: Kikkoman Corporation operates two stores: A1 and B2. The following information relates to store B2:…

A: Segment margin is the amount of profit or loss produced by one component of a business. Segment…

Q: Media Mogul Inc. is a marketing company that offers a variety of marketing offerings to its…

A: The entity will only include variable consideration only to the extent that it is probable that a…

Q: london Printing wishes to print and market the book prepared by X person on engineering economy.…

A: Break even sales: The level of sales where the revenue generated is equal to the cost incurred by…

Q: Your firm sells high-end road and mountain bikes and related accessories. The following information…

A: Customer retention is the term which is defined as company ability to retain the customers over…

Q: Bigdog Company distributes pet products. Its ABC system has five activities: Activity Area Cost…

A: solution given Activity Area Cost Driver Rate in 2020 1. Order processing $50 per order…

Q: CVP analysis, income taxes. The Home Style Eats has two restaurants that are open 24 hours a day.…

A: Given Information:Fixed Cost = $430,500Selling Price = $ 8.75Variable Cost = $3.5Income Tax rate =…

Q: Identify the activity ratio of a computer shop is its Cost of Goods Sold is P12 million and the…

A: Ratio analysis is the analysis of financial performance of the organization. Ratio analysis is done…

Q: 1. A newly opened food chain estimates to serve 200 customers a day, with an average consumption or…

A: Introduction The break even point in a business refers to market value which equals the cost of…

Question

Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant from the information below.

Food Beverage Total

Sales $240,000 $160,000 $400,000 100%

VC 144,000 48,000 192,000 48%

CM 96,000 112,000 208,000 52%

FC 150,000

IBIT 58,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant with total fixed costs of $150,000 from the information below: Sales Contribution Mix Margin Food 60% 40% Beverage 40% 70%
Use the cvp and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi product restaurant with total fixed costs of $150,00 from the information Sales mix contribution margin food 60% 40% Beverage 40% 70%
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 109,349 $ 63,171 Net income 27,022 4,592 Total assets, beginning 76,283 40,599 Total assets, ending 118,571 46,733 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Return on Assets Choose Numerator ÷ Choose Denominator = Return on Assets ÷ = Return on assets ÷ = Profit Margin Choose Numerator ÷ Choose Denominator = Profit Margin ÷ = Profit Margin ÷ = Asset Turnover Choose Numerator ÷ Choose Denominator = Asset Turnover ÷ =…
A hotel’s food department statement shows the following: Food revenue $400,000 Beverage revenue 100,000 Total revenue 500,000 Food cost of sales 120,000 Beverage cost of sales 20,000 Total cost of sales 140,000 a.) What is the food profit? b.) What is the beverage profit? c.) What is the total profit on food and beverage? d.) What is the food cost percentage? e.) What is the beverage cost percentage?
Using this information below, answer the following question: What is the Net Income required? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Group of answer choices $1,080,000 $1,010,000 $1,000,000 $1,090,000
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 110,149 $ 63,971 Net income 27,822 5,392 Total assets, beginning 77,083 42,199 Total assets, ending 120,171 48,333 Required: 1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales 109,649 63,471 Net income 27,322 4,892 Total assets, beginning 76,583 41,199 Total assets, ending 119,171 47,333 Required: 1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. 3-a. Which company has the higher profit margin? Sub Station’s Planet Sub 3-b. Which company has the higher asset turnover? Sub Station’s Planet Sub 3-c. Are the two ratios consistent with the primary business strategies of the two companies? Yes No
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 110,149 $ 63,971 Net income 27,822 5,392 Total assets, beginning 77,083 42,199 Total assets, ending 120,171 48,333 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub’s business strategy is to sell the lowest cost sub on the planet. Sub Station Planet Sub Net sales $ 109,349 $ 63,171 Net income 27,022 4,592 Total assets, beginning 76,283 40,599 Total assets, ending 118,571 46,733 Required: 1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Return on Assets Choose Numerator ÷ Choose Denominator = Return on Assets ÷ = Return on assets ÷ = Profit Margin Choose Numerator ÷ Choose Denominator = Profit Margin ÷ = Profit Margin ÷ = Asset Turnover Choose Numerator ÷ Choose Denominator = Asset Turnover…
Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station’s business strategy is to sell the best-tasting sandwich with the highestquality ingredients. Planet Sub’s business strategy is to sell the lowest-cost sub on the planet. Sub Station Planet SubNet sales $ 108,249 $ 62,071Net income 25,922 3,492Total assets, beginning 75,183 38,599Total assets, ending 116,371 44,533Required:1. Calculate Sub Station’s return on assets, profit margin, and asset turnover ratio.2. Calculate Planet Sub’s return on assets, profit margin, and asset turnover ratio.3. Which company has the higher profit margin and which company has the higher asset turnover? Is this consistent with the primary business strategies of these two companies?
Using this information below, answer the following question: What is the CMRw? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Group of answer choices 0.70 0.30 0.20 0.50 DO not give answer in image
What is the level of sales needed to achieve a 15% ROI of $6,000,000 for a restaurant (the restaurant has main products it wells: food, beverage, and gift store) and cover all costs? Food generates 55% of total sales with a CMR of 40%. Gift store generates 25% of sales with a CMR of .60. Beverage accounts for the rest of sales with a CMR of .8. The tax rate is 28% and fixed costs are $175,000 annually. Group of answer choices