The Eastman Family Restaurant is open 24 hours per day.Fixed costs are $24,000 per month.Variable costs are estimated at $9.60 per meal.The average revenue is $12 per meal.The restaurant wished to earn a profit before taxes of $6,000 per month.
Required:
A) Compute the number of meals that must be served to earn a profit before taxes of $6,000 per month.
B) Assume that fixed costs increase to $30,000 per month. How many additional meals must be served to earn a profit before taxes of $6,000 per month?

Question

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The Answer of The Eastman Family Restaurant is open 24 hours per day.Fixed costs are $24,000 per month.Variable costs are estimated at $9.60 per meal.The average revenue is $12 per meal.The restaurant wished to earn a profit before taxes of $6,000 per month.
Required:
A) Compute the number of meals that must be served to earn a profit before taxes of $6,000 per month.
B) Assume that fixed costs increase to $30,000 per month. How many additional meals must be served to earn a profit before taxes of $6,000 per month?

The Eastman Family Restaurant Is Open 24 Hours Per Day