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5. Nature's Garden, a new restaurant situated on a busy highway in Pamona, California, specializes ina chef's salad selling for $7. Daily fixed costs are

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5. Nature's Garden, a new restaurant situated on a busy highway in Pamona, California, specializes ina 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. REQUIRED: A DETERMINE THE CURENT AVERAGE COST PER MEAL A bus load of 30 Girl Scouts stops on its way home from San Bernardino National Forest. The leader offers to bring them in if the scouts can be served a meal for a total of $150. The owner refuses, saying it would lose $.60 per meal if he accepted this offer. How did the owner arrive at the S.60 figure? Comment

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