QUESTION 3 (20 MARKS) Jack owns and operates a restaurant. His fixed costs are RM21,000 per month. He serves luncheons and dinners. The average total bill is RM 19 per customer Jack's present variable costs average RM 10.60 per meal. Required: (a) Compute the break-even point in number of meals and in total sales RM per month. (4 marks) (CLO3:PLOS:C3) (b) If Jack want to earn a profit of RM 8,400 per month, compute the number of meals he need to serve in units and RM. (4 marks) (CLO3:PLOS:C3) (c) Jack's rent and other fixed costs rise to a total of RM 29,925 per month and variable costs also rise to RM 12.50 per meal. If Jack increases his average price to RM 23, compute how many meals should he serve to make RM 8,400 profit per month (6 marks) (CLO3:PLOS:C3) Page 5 of 7 (d) Assume the same situation in requirement (C). Jack's accountant tells him he may lose 10% of his customer if she increases his prices. If this should happen, compute the Jack's profit per month by assuming that the restaurant had been serving 3,500 customers per month. (6 marks) (CLO3:PLOS:C3) Assume the same situation in requirement (d). To help offset the anticipated 10% loss of customers, Jack hires a pianist to perform for 4 hours each night for RM 2,000 per month. Assume that this would increase the total monthly meals from 3,150 to 3,450. Compute the Jack's total profit. (4 marks) (CLO3:PLOS: C3)