Samantha McKnight owns and operates a restaurant. Her fixed costs are $19,000 per month. She serves luncheons and dinners. The average total bill (excluding tax and tip) is $20 per customer. McKnight's present variable costs average $7.50 per meal. Read the requirements. Determine the formula used to calculate the target number of meals, then calculate the target number of meals. Target net income + Fixed costs Contribution margin per meal = Target # of meals 2,540 Requirement 4. Assume the same situation described in requirement 3. McKnight's accountant tells her she may lose 10% of her customers if she increases her prices. If this should happen, what would be McKnight's profit per month? Assume that the restaurant had been serving 2,200 customers per month. Determine the formula used to calculate the profit per month, then calculate the profit. Total revenue - Total variable costs - Fixed costs Profit 1638 = Requirement 5. Assume the same situation described in requirement 4. To help offset the anticipated 10% loss of customers, McKnight hires a pianist to perform for 4 hours each night for $2,100 per month. Assume that this would increase the total monthly meals from 1,980 to 2,150. Would McKnight's total profit change? By how much? At 2,150 customers per month, the profit would be $ 2020. McKnight's total profit would increase by $ 382 A Requirements 1. How many meals must she serve to attain a profit before taxes of $8,500 per month? 2. What is the break-even point in number of meals served per month? 3. Suppose Mcknight's rent and other fixed costs rise to a total of $27,270 per month and variable costs also rise to $9.40 per meal. If McKnight increases her average price to $24, how many meals must she serve to make $8,500 profit per month? 4. Assume the same situation described in requirement 3. McKnight's accountant tells her she may lose 10% of her customers if she increases her prices. If this should happen, what would be Mcknight's profit per month? Assume that the restaurant had been serving 2,200 customers per month. 5. Assume the same situation described in requirement 4. To help offset the anticipated 10% loss of customers, McKnight hires a pianist to perform for 4 hours each night for $2,100 per month. Assume that this would increase the total monthly meals from 1,980 to 2,150. Would Mcknight's total profit change? Ry how much