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Dot's Restaurant must decide between two technology processes in their kitchen. They only serve dinner after 4 p . m . on a small island
Dot's Restaurant must decide between two technology processes in their kitchen. They only serve dinner after pm on a small island called Sanibel. The restaurant is open days per year. Dot and her husband, Ham, are retired. They became bored playing golf five times a week and decided to open this boutique restaurant. Process A uses an induction oven and microwave process with a fixed cost of $ and a variable cost of $ per meal. Process uses a gas fired oven process with heating lamps with a fixed cost of $ and a variable cost of $ per meal. Process A speeds up cooking and delivery time. The average selling price per meal is $
a What is the breakeven quantity? Round your answer to the nearest whole number.
meals
b If the restaurant manager expects to sell meals, which option, A or B is best? Round your answers the nearest dollar.
Cost of Option A: $
Cost of Option B: $
So is the best option.
c Is the restaurant profitable if they purchase the process option you recommend in part b Enter your answer as a positive value. Round your answer to the nearest dollar.
The restaurant's is $
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