The Alibi Restaurant is normally open for business until 8:00 p.m. Recently, business
Labor Cost Considerations- please kindly answer questions in bold with given information.The Alibi Restaurant is normally open for business until 8:00 p.m. Recently, business has been getting better during the time period just before closing, and the manager is attempting to determine the viability of remaining open until 9:00 p.m. She estimates her additional costs for the extra hour as follows:Labor- $75Heat, light, and gas- $12Variable cost of food, beverage, etc.- 40% of salesa. What additional sales are necessary for the manager to break even exactly on the extra hour of opening:b. If the manager were able to obtain $280 in sales volume for the extra hour, what income could be applied to normal overhead expenses?A restaurant’s income statement shows the following cost and sales structure:Sales: $450,000Fixed costs: $135,000Directly variable costs: $120,000What must the semivariable cost figure be if the restaurant is to show a profit of $30,000?
