Question
Expenses for a Pizza restaurant include raw material for pizza at $6.00 per slice, $120.00 as monthly rental and $36.00 monthly as insurance. Lost sale
Expenses for a Pizza restaurant include raw material for pizza at $6.00 per slice, $120.00 as monthly rental and $36.00 monthly as insurance. Lost sale expense is considered to be $6.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month.
Today the restaurant prepared 200.00 pizza slices and sells them for $13.00/slice. There was a party at a nearby office so the demand for pizza went up to 222.00 slices. How much profit did the restaurant earn today?
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Answer format: Currency: Round to: 0 decimal places.
You run a school in Florida. Fixed monthly cost is $5,149.00 for rent and utilities, $6,385.00 is spent in salaries and $1,705.00 in insurance. Also every student adds up to $98.00 per month in stationary, food etc. You charge $658.00 per month from every student now.
You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,930.00, salaries to $6,912.00 and insurance to $2,296.00 per month. Variable cost per student will increase up to $155.00 per month. However you can charge $1,094.00 per student. At what point will you be indifferent between your current mode of operation and the new option?
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Answer format: Number: Round to: 0 decimal places.
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