The income statement from a nearby restaurant reveals the following:
Sales $500,000
Fixed costs $150,000
Directly variable costs $200,000
If the restaurant is to earn a profit of $50,000, semivariable costs must be:

Question

Quizplus · Accepted Answer

To achieve a profit of $50,000, the total costs (fixed, variable, and semivariable) must be subtracted from sales. The calculation is $500,000 (Sales) - $150,000 (Fixed Costs) - $200,000 (Directly Variable Costs) - Desired Profit ($50,000) = $100,000 for semivariable costs.

The Income Statement from a Nearby Restaurant Reveals the Following