Jemma Olivera is a celebrity social media chef, who wishes to open a new restaurant in an historic building in Toowoomba. The following are estimates relating to the first year of operations Hire of the premises including electricity: $500 per week all year round. Average charge to customers for meals: $55 Average costs for ingredients per meal: $15 Dishwashing and linen costs per meal: $2 The restaurant seats 30 people and it is open 6 nights a week (shut on Mondays). It is predicted that the restaurant will be 50% full on week nights and 90% full at the weekends The restaurant will be open 48 weeks per year Cost of cleaners: $100 per week (for every week open) Cost of other staff $600 per week - all year Hire of musicians (Saturdays only) $30 per Saturday Other overheads $15 per week (all year) The restaurant does not serve alcohol but guest may bring their own wine. There is no charge or additional cost for this Ignore GST Required 1. 2. 3. 4. 5. 6. Calculate the variable costs per meal (unit) (1 mark) Calculate the contribution margin per meal (unit) (1 mark) Calculate the fixed costs of the restaurant per annum (3 marks) How many meals does the business need to sell per annum to break even? (2 marks) Ifthe estimated number of guests is correct, what would the annual profit be? (8 marks) Jemma's market research predicts that if she spends $20,000 per annum of advertising then week night guests are expected to increase to 60% of the restaurant's capacity, ls this worthwhile doing