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Required information [The following information applies to the questions displayed below.] Each of the following situations is independent: Special-Order Pricing Barry's Bar-B-Que is a popular
Required information [The following information applies to the questions displayed below.] Each of the following situations is independent: Special-Order Pricing Barry's Bar-B-Que is a popular lunch-time spot. Barry is conscientous about the quality of his meals, and he has a reguiar crowd of 600 patrons for his $5 lunch. His variable cost for each meal is about $2, and he figures his flxed costs, on a dolly bosis, are about $1,200. From time to time, bus-tour groups with 50 patrons stop by. He has weicomed them because he has capacity to seat 700 diners in the average lunch period, and his cooking and wait staff can easily handle the additional foad. The tour operator generally pays for the entire group on a single check to save the walt staff and cashler the additional time. Due to competitive conditions in the tour business, the operator is now asking Barry to lower the price to $3.50 per meal for each of the 50 bus-tour members. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Required: 1.a. What is the incremental profit (loss) per bus-tour meal? 1.b. Should Barry accept the bus-tour offer? 2-a. At least once per month, the tour compony is in a position to guarantee 200 pstrons (or four bus loads) in a single day. On those days, the tour company is asking for an even lower price of $3.00 per meal. What is the incremental profit (loss) for each meai? 2.b. Is the offer financially attractive? Complete this question by entering your answers in the tabs below. What is the incremental profit (loss) per bus-tour meal? Complete this question by entering your answers in the tabs below. At least once per month, the tour company is in a position to quarantee 200 patrons (or four bus loads) in a single day. On those days, the tour company is asking for an even lower price of $3,00 per meal. What is the incremental profit (loss) for each meal
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