Question

River Front restaurant has the average check at $25, which the foods are $20 and beverages are $5. The profit margin is 30% for food and $2 for beverage. The fixed costs that includes payroll, rent, and utilities are anticipated for $200,000 per month. (Please answer the question 46 to 50

46.

What is the weighted CMR for River Front restaurant?

Group of answer choices

a. 30%

b. 35%

c. 32%

d. 36%

47.

What is the revenue at breakeven point?

Group of answer choices

a. $625,000

b. $600,000

c. $650,000

d. $675,000

48.

How many meals should River Front restaurant need to sell at breakeven point?

Group of answer choices

a. 24,000

b. 25,000

c. 26,000

d. 27,000

49.

If the River Front restaurant wants to make a pretax income of $100,000, what is the revenue?

Group of answer choices

a. $900,500

b. $925,500

c. $950,000

d. $937,500

50.

How many meals should the River Front restaurant need to sell to make a pretax income of $100,000?

Group of answer choices

a. 37,000

b. 37,500

c. 37,250

d. 37,450

Answer 1

		Foods	%	Beverages	%
	Selling Price	20	100%	5	100%
	LESS: Variable cost	14	70%	3	60%
	Contribution margin	6	30%	2	40%
46)	Cprrect Option C i.e 32%
	Weigheted average CMR = 30%*80% + 40%*20%
	32.00%
47)	Correct Option A i.e. $625000
	Break even = Fixed cost / Weighted CMR
	=200000/32%
	625000
48)	Correct Option B i.e. 25000 Units
	Units = 625000/25
	25000
49)	Correct Option D i.e. $937500
50)	Correct Option B i.e. 37500
	(937500/25)