Use the concepts in Problem 20-44 to complete the following requirements.

Measure                                                                                     Percent of Total Responsibility
Occupancy rate (also reflects guest service quality)..............................................................20%
Operating within 95% of expense budget..................................................................................30
Average room rate.........................................................................................................................30
Energy use......................................................................................................................................20
...................................................................................................................................................100%

Required

1. A restaurant manager has the following goals: (1) serve 300 customers per day and (2) achieve an average price per customer of $6.88. The restaurant is open 365 days per year. The two goals are equally important. The manager’s salary is $68,000. The manager’s incentive pay should be $12,800 if both goals are achieved.

Assuming the compensation is linear, what are the rates (amount per customer served for the first goal and amount per penny of average price per customer for the second goal) that should be in the manager’s incentive contract?

a. $0.1168 per customer served; $18.6046 per penny of average price per customer.

b. $0.0292 per customer served; $4.6512 per penny of average price per customer.

c. $0.1205 per customer served; $12.5224 per penny of average price per customer.

d. $0.0584 per customer served; $9.3023 per penny of average price per customer.

Independent of your answer to requirement 1, assume that the rate is $0.0763 per customer served and $11.4451 per penny of average price per customer.

2. Calculate the manager’s total compensation if the restaurant serves 280 customers per day at an average price of $6.75. Round your final answer to the nearest dollar.

a. $80,252.

b. $83,523.

c. $74,103.

d. $78,622.