Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 :Expenses for a Pizza restaurant include raw material for pizza at $ 4 . 0 0 per slice, $ 1 0 7 . 0

1:Expenses for a Pizza restaurant include raw material for pizza at $4.00 per slice, $107.00 as monthly rental and $45.00 monthly as insurance. Lost sale expense is considered to be $4.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month.
Today the restaurant prepared 200.00 pizza slices and sells them for $14.00/slice. There was a party at a nearby office so the demand for pizza went up to 223.00 slices. How much profit did the restaurant earn today?
2:You run a school in Florida. Fixed monthly cost is $5,038.00 for rent and utilities, $6,347.00 is spent in salaries and $1,064.00 in insurance. Also every student adds up to $100.00 per month in stationary, food etc. You charge $671.00 per month from every student now.
You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,775.00, salaries to $6,719.00 and insurance to $2,433.00 per month. Variable cost per student will increase up to $151.00 per month. However you can charge $1,078.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Your Money The Missing Manual

Authors: J.D. Roth

1st Edition

0596809409, 978-0596809409

More Books

Students also viewed these Finance questions

Question

Calculate a 95% Confidence interval for Placebo-caffeine, 6

Answered: 1 week ago

Question

Explain exothermic and endothermic reactions with examples

Answered: 1 week ago

Question

Write a short note on rancidity and corrosiveness.

Answered: 1 week ago