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Goodies Caf is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthday party for 38
Goodies Caf is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthday party for 38 people at a house in the neighbourhood. Staff would have to prepare the food in the caf kitchen and then transport it offsite to the party. The chef figures that the regular 3 cooks in the kitchen on a Saturday would be able to fit most of the food preparation into their schedule, but they would need at least 2 more cook for the afternoon for 5 hours at $17 per hour. The chef maintains a 30% food cost according to the annual budget and 5 additional servers and a supervisor would be needed to serve food at the party. The party is expected to last 5 hours on Saturday night. Servers earn $17 per hour and the supervisor earns $37,000 per year. The restaurant would also have to rent a truck for $90 to transport the food. If the restaurant does not accept the job, the supervisor will resume normal duties in the caf for Saturday service. Based on a quantitative analysis, should the restaurant accept the birthday party job if the customer can pay only $30 per person for food? Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Use the negative sign for a net loss. Revenue Food Cost Servers Cook Truck Total Costs Net Income (Loss) $ The job should be:
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