Mickey's Restaurant had a net income last year of $40,000 after fixed costs of $130,000 and total variable costs of $80,000.
a) What was the restaurant's break-even point in sales dollars?
b) If fixed costs in the current year rise to $140,000 and variable costs remain at the same percentage of sales as for last year, what will be the break-even point?
c) What sales in the current year will result in a profit of $50,000?

Question

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The Answer of Mickey's Restaurant had a net income last year of $40,000 after fixed costs of $130,000 and total variable costs of $80,000.
a) What was the restaurant's break-even point in sales dollars?
b) If fixed costs in the current year rise to $140,000 and variable costs remain at the same percentage of sales as for last year, what will be the break-even point?
c) What sales in the current year will result in a profit of $50,000?

Mickey's Restaurant Had a Net Income Last Year of $40,000