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Q2. Restaurant Sultra Management estimates the maximum capacity of the restaurant as 1,000 customers per day. Variable costs (food and labour) are on average $7.00
Q2. Restaurant Sultra Management estimates the maximum capacity of the restaurant as 1,000 customers per day. Variable costs (food and labour) are on average $7.00 per customer at the current price level. Their fixed costs are $1,000 per day. Currently, the average check is $10, but management is trying a new price of $10.99, and anticipates they will lose some customers due to the higher price. Given the following information, calculate what the Income, REVPAC, and CONPAC would be for each of the three different situations. Data: Situation 1 Situation 2 Situation 3 Number of covers sold 600 546 630 Avg. Check $10.00 $10.99 10.00 Q2.a. What is the Revenue for each of the three situations? Q2.b. What is the Income for each of the three situations? Q2.c. What is the REVPAC for each of the three situations? Q2.d. What is the CONPAC for each of the three situations? Q2.e. Which is the ideal situation for Sultra and why
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