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Q7 Ebby and Fiza live in Seri Iskandar, Perak. Two years ago they visited Thailand. Fiza a chef was impressed with the cooking meathods and

Q7 Ebby and Fiza live in Seri Iskandar, Perak. Two years ago they visited Thailand. Fiza a chef was impressed with the cooking meathods and the spices used in the thai food. They are contemplating of opening one thai restaurant in seri Iskandar. Fiza would supervise the cooking and ebby would leave his current job to be the restaurant manager. The restaurant would serve dinner 5 nights a week.

Ebby has noticed a restaurant for lease. The restaurant has seven tables each of which can seat four. Tables can be moved altogether for a large pary. Fiza is planning to seatings per evening and the restaurant will be open 50 weeks per year

Ebby and fiza have drawn the following estimates

Average revenue including beverage and dessert

RM 45 PER MEAL

Average cost of food

RM 15 PER MEAL

Chef and dishwasher salary

RM 61200 PER YEAR

Rent(premise,equipment)

RM 4000 PER MONTH

Cleaning (linen,premises)

RM 800 PER MONTH

Replacement of dishes,cutlery,glasses

RM 300 PER MONTH

Utilities,advertising, telephone

RM 2300 PER MONTH

Q7A Compute the annual breakeven number of meals and sales revenue for the restaurant

Q7B Compute the number of meals and amount of sales revenue needed to earn operating income of RM 75600 PER YEAR

Q7C How many meals must be served each night to earn their targets income of RM 75600?

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