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Business, 22.05.2020 19:59 tgreenberg2002
150-seat restaurant $8,000,000 is needed to construct the restaurant; no additional investment is needed in working capital.
The owners have 6,000,000 in cash and borrow the rest from the bank at 5%.
The projected average seat turnover is 2 (use 320 days open in a year).
The stockholders require a 15% return on their investment annually.
The restaurant pays income taxes at the rate of 25%.
The restaurant’s estimated undistributed expenses, not including income taxes, total $2,000,000.
The forecasted cost of food sold and variable labor is 50 percent of sales.
What is the projected annual total number of covers?
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150-seat restaurant $8,000,000 is needed to construct the restaurant; no additional investment is ne...
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