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Let's assume you want to open a restaurant in downtown Baton Rouge. You have calculated that your fixed costs are $40000, and your variable cost
Let's assume you want to open a restaurant in downtown Baton Rouge. You have calculated that your fixed costs are $40000, and your variable cost is on average $15 for each meal that you serve. If you charge your customers on average $25 for each meal, how many customers do you need to serve to reach the break-even point? Assuming that you have on average 40 customers each day and work 5 days per week (i.e., you close on weekends), how many weeks does it take to break even?
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