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Ricky's Fiesta Diner is a family-owned restaurant that serves pizza and italian dishes. Data concerning the restaurant's monthly revenues and costs appear below ( q
Ricky's Fiesta Diner is a family-owned restaurant that serves pizza and italian dishes. Data concerning the restaurant's monthly revenues and costs appear below ( q refers to the number of meals served): Formula Revenue $12 q Cost of ingredients $3.50 q Wages $7,500 Utilities $600+$0.20 q Rent $2,500 Part (a) Prepare the diner's planning budget for January assuming that 1,500 meals are served. (10 POINTS) Part (b) Assume that 1,600 meals were served in January. Prepare a flexible budget for this level of activity. (10 POINTS)
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