Nature’s Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef’s salad selling for \($7\). Daily fixed costs are \($1,200\), and variable costs are \($4\) per meal. With a capacity of 800 meals per day, the restaurant serves an average of 750 meals each day. Nae MEWoy Required

a. Determine the current average cost per meal.

b. A busload of 30 Girl Scouts stops on its way home from the San Bernardino National Forest. The leader offers to bring them in if the scouts can all be served a meal for a total of \($150\). The owner refuses, saying he would lose \($0.60\) per meal if he accepted this offer. How do you think the owner arrived at the \($0.60\) figure? Comment on the owner’s reasoning.

c. A local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman’s employees one meal each day at a special price of \($4.50\) per meal. Should the restaurant owner accept this offer? Why or why not?