Juan Castillo is the owner and manager of La Cantina Restaurant. The flat fee is $10,500 per month. The restaurant provides lunch and dinner. On average each visitor spends $7 (excluding taxes and tips). The current variable cost averages $2.80 for each dish.

Asked:

a. How many dishes must be served to earn a pre-tax profit of $4,200 per month?

b. Juan was told by his accountant, that he could lose 10% of his subscription if he raised the price. If that happens, how much does Juan make per month? Assume that juan has been serving 3,500 visitors every month.

c. Return to the data in question d. To overcome the possibility of decreasing the number of visitors by 10% it. Juan signed a music player with an honorarium of $800 per month, to perform four hours each night. Assume that the presence of a music player will increase the number of dishes to 3,450 per month. Will Juan's profit change? How much?