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Please include the solutions/formulas for all required parts. L01, 2, 3 E4-20 Special Order Nature's Garden, a new restaurant situated on a busy highway in
Please include the solutions/formulas for all required parts.
L01, 2, 3 E4-20 Special Order Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $9. Daily fixed costs are $1.200, and variable costs are $5 per meal. With a capacity of 800 meals per day, the restaurant serves an average of 750 meals each day. Required a. Determine the current average cost per meal b. A busload of 30 Girl Scouts stops on its way home from the San Bernardino National Forest. The leader offers to bring them in if the scouts can all be served a meal for a total of S180. The owner refuses. saying he would lose S0.60 per meal if he accepted this offer. How do you think the owner arrived at the $0.60 figure? Comment on the owner's reasoning. c. A local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman's employees one meal each day at a special price of S5.50 per meal. Should the restaurant owner accept this offer? Why or why not Step by Step Solution
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