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For several years, Bellagio's Restaurant has offered a lunch special for $7.00. Monthly fixed expenses have been $4,200. The variable cost of a meal

 

For several years, Bellagio's Restaurant has offered a lunch special for $7.00. Monthly fixed expenses have been $4,200. The variable cost of a meal has been $2.10. Anthony Bellagio, the owner, believes that by remodeling the restaurant and upgrading the food services, he can increase the price of the lunch special to $7.40. Monthly fixed expenses would increase to $4,800 and the variable expenses would increase to $2.96 per meal. 4.1.Compute Bellagio's monthly break-even sales in dollars before remodeling. 4.2.Compute Bellagio's monthly break-even sales in dollars after remodeling. 4.3. What recommendation would you make to Anthony Bellagio concerning remodeling remodeling the restaurant?

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