Question a restaurant has budgeted sales revenue of 912000, Ask an Expert

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Question: A restaurant has budgeted sales revenue of $912,000 for the next year. Variable costs are 72% of sales revenue and fixed cost is $102,000. Answer the following questions:

a. What are the total variable costs in dollars?

b. What is the restaurant's gross margin expected to be?

c. What is the amount of operating income (before tax)?

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