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# The Eastman Family Restaurant is open 24 hours per day serving breakfast lunch and dinner Fixed costs are 24000 per month Variable costs are estimated at 960 per meal The average total bill

The Eastman Family Restaurant is open 24 hours per day serving breakfast, lunch, and dinner. Fixed costs are \$24,000 per month. Variable costs are estimated at \$9.60 per meal. The average total bill (excluding tax and tip) is \$12 per customer.
Required:
a. Compute the number of meals that must be served if the Eastman Family Restaurant wishes to earn a profit before taxes of \$6,000.
b. Compute the break-even point in meals.
c. Compute the break-even volume in dollars.
d. Assume that fixed costs increase to \$30,000. How many additional meals must be served if the Eastman Family Restaurant wishes to earn the same before-tax profit?

Jun 10 2021 View more View Less