Question: A restaurant with an average check of $14 per guest has the following average monthly figures:
Sales revenue $700,000
Variable costs 434,000
Fixed costs 168,000
a. What is breakeven sales revenue?
b. If actual sales revenue was $640,000, what would the restaurant's operating income be?
c. If actual sales revenue was $640,000, how many fewer customers per month would be served than at the forecasted sales revenue level of $700,000? The average check remains at $14.