Number of Guests to Achieve Desired After-Tax Profit
`"Number of Guests to Achieve Desired After-Tax Profit" = ( "Fixed Costs" + "Before-Tax Profit" )/ "Contribution Margin per Guest" `
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The number of guests to achieve after-tax profit can be attained by adding the fixed costs to the before tax-profit and dividing this by the company's contribution margin per guest.
Resource:
- Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
