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A restaurant owner has lease payment of $2200/month, utility cost $500/month. Two employees work with $10/hr/person. This includes all overhead and benefits. Each employee works

A restaurant owner has lease payment of $2200/month, utility cost $500/month.

Two employees work with $10/hr/person. This includes all overhead and benefits. Each employee works an average of 160 hours per month.

The average revenue per customer is estimated to be $7.00 and the variable cost of serving is $2 per customer.

  1. At how many customers will make this business at breakeven point
  2. How many customers need to be served per month to achieve a monthly profit of $6,500.

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