1. Alicia works in a restaurant that has monthly costs of $1500 for rent, $2000 for salaries, and $1700 for other expenses. On the menu, the restaurant has entrees that sell for $9.99 each. On average, it costs $3.50 in food and materials to serve each of these entrees. Also, suppose the restaurant must pay an operation fee equal to 10% of the selling price to the city. The restaurant's capacity is 1500 entrees per month. (25 pts) a) Compute the break-even point as a percent of capacity. Compute the break-even point in dollars. b) c) d) e) Draw a break-even chart. What is the restaurant's profit if they sell 1200 entrees per month? What is the maximum fixed cost they can pay, if the price they can charge drops to $8?

1. Alicia works in a restaurant that has monthly costs of $1500 for rent, $2000 for salaries, and $1700 for other expenses. On the menu, the restaurant has entrees that sell for $9.99 each. On average, it costs $3.50 in food and materials to serve each of these entrees. Also, suppose the restaurant must pay an operation fee equal to 10% of the selling price to the city. The restaurant's capacity is 1500 entrees per month. ( 25 pts) a) Compute the break-even point as a percent of capacity. b) Compute the break-even point in dollars. c) Draw a break-even chart. d) What is the restaurant's profit if they sell 1200 entrees per month? e) What is the maximum fixed cost they can pay, if the price they can charge drops to $8