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Chicago Cubs owns and operates a cafe at the ballpark and below are their costs: Fixed cost & rent 511,500 per month Average bill 30.00
Chicago Cubs owns and operates a cafe at the ballpark and below are their costs: Fixed cost & rent 511,500 per month Average bill 30.00 excludes tax and tip Variable cost 54.70 per meal Required: a) How many meals must be served to attain a profit before taxes of $2 518 a month? 3,260 The team's rent and other fixed costs rise to a total of $15,750 a month. Assume that variable costs also rise to $5.75 per meal. If they increase the average bill by 20%%, how many meals must they now serve to make $2,835 profit before taxes per month? 3,700 Using this original information, what would the operating income be if they sold 3,500 meals were sold? Fixed cost & rent 511,500 per month 3,550 Average bill 50.00 excludes tax and tip Variable cost 34.70 per meal
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