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1.A restaurant prepares 200.00 pizza slices and sells them at a rate of $14.00/slice. Expenses for the restaurant include raw material for pizza at $6.00

1.A restaurant prepares 200.00 pizza slices and sells them at a rate of $14.00/slice. Expenses for the restaurant include raw material for pizza at $6.00 per slice, $102.00 as monthly rental and $23.00 monthly as insurance. Restaurant is open only for 25 days in a month. Today there was a party at nearby office so the demand for pizza went up to 218.00 slices. Due to lack of availability vendor could not fulfill the demand and analyzed a lost sale as $5.00 per item. How much profit could the restaurant earn today?

2.For a table manufacturing company, selling price for a table is $65.00 per Unit, Variable cost is $15.00 per Unit, labor charge is $10.44 per Unit, rent is $573.00 per month and transportation is $10 per 10 tables. If 50 tables are sold in a month how much is the fixed cost for that month?

3. You run a school in Florida. Fixed monthly cost is $5,355.00 for rent and utilities, $6,008.00 is spent in salaries and $1,374.00 in insurance. Also every student adds up to $92.00 per month in stationary, food etc. You charge $689.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,785.00, salaries to $6,980.00 and insurance to $2,337.00 per month. Variable cost per student will increase up to $187.00 per month. However you can charge $1,149.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

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