Natalie's Caf, a proposed 100-seat restaurant, is expected to have the following investment costs, annual sales, and expenses: Natalie's investment Funds borrowed Average tax rate Non-operating expenses (excluding interest) Depreciation Food costs Labor costs (variable) Labor costs (fixed) Other controllable costs ROI Interest rate Seat turnover Days open $300,000 = $400,000 ||||||||||||||||||||||||||||||| 25 percent $40,000 $60,000 30 percent of food sales 15 percent of food costs = $150,000 = $100,000 15 percent 10 percent = 2 times per day 313 Required: 1. Determine the average price per meal. 2. Assume that the revenue is divided between lunch and dinner at 40 percent and 60 percent, respectively. Further, assume the lunch seat turnover averages 1.2 times per Approaches to Pricing 433 day, while dinner seat turnover averages .8 times per day. What are the average prices for lunch and dinner?