RECOMMENDED!!ACCT 2302-Ideally, the Holms would like to show a profit
Ideally, the Holms would like to show a profit of $75,000. Calculate the salesdollars that they would need to earn operating income of $75,000. (Show all calculations)Average revenue, including beverages & desserts$ 45 per mealAverage cost of food 15 per mealFixed ExpensesChef’s Salary 36,000 per yr.Dishwasher’s Salary 24,000 per yr.Payroll Tax Expense* 5,458 per yr.Rent (premises, equipment) 48,000 per yr.Cleaning of premises 3,600 per yr.Replacement of dishes, cutlery, glasses 9,600 per yr.Utilities 10,800 per yr.Advertising 7,200 per yr.Phone 3,000 per yr.Depreciation Expense – Office Furniture 360 per yr.Depreciation Expense – Computer 900 per yr.Interest Expense 3,000 per yr.Total Fixed Costs 151,918
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