Morenos Italian Oven is open seven days a week for lunch and dinner. The restaurant seats 60

Question:

Moreno’s Italian Oven is open seven days a week for lunch and dinner. The restaurant seats 60 patrons in a day and averages 90 percent capacity. It is considering expanding into the space adjacent to the restaurant. The cost to remodel the area and buy additional kitchen and restaurant equipment is estimated at $200,000. The rent on the additional space is $1,200 a month. 


INSTRUCTIONS 

1. If Moreno’s could double the number of customers served weekly, calculate how many it could serve per week.

2. If each customer spends an average of $12 per meal, calculate the additional revenue the restaurant would earn per day if it expands and maintains 90 percent capacity.

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