According to the Wall Street Journal, many restaurant owners experimenting with different business models these days to cope with the hiring difficulties. One story says an owner start to increase the price tag of the menu in order to pay her employees better, so that employees can consider the restaurant job as a career, rather than a low-paying temporary gigs. Inspired by the story, let's consider two competing business models for a restaurant in St. Louis, Missouri Unit Characteristics n/a Average price tag per table Total number of tables Initial overhead Expected daily demand by tables Cost of raw materials per table Cost of labor per hour per person Daily operating hours Total number of full-time servers Model 1 - Luxury Restaurant High quality food, productive workers, high menu price, and limited demand 250 10 150,000 15 150 35 5 4 Model 2 - Typical Restaurant Average food, average workers, average menu price, and regular demand 85 18 70,000 30 45 15 10 6 Questions: 1) First, please complete the "Unit column at the table above. For the following questions, please provide the final answers at the table below. 2) Which business model will take shorter amount of time to pay off its overhead? 3) What is the server-to-table ratio in each model? 4) The servers from model 1 make more than double than their model 2 counterparts. Is this justified? What measure should be used to answer this question? Answer Section: Item for Analysis Model 1 - Luxury Restaurant Model 2 - Typical Restaurant Daily Revenue Daily Variable Cost Daily Contribution Number of Days to Break-even Server-to-table ratio Measure