Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

sold? Assme 2-33 Basic Relationships, Restaurant (W. Crum, adapted.) Nicole Azarski owns and operates a restaurant. Her fixed costs are $10,500 per month. Luncheons and

image text in transcribed

sold? Assme 2-33 Basic Relationships, Restaurant (W. Crum, adapted.) Nicole Azarski owns and operates a restaurant. Her fixed costs are $10,500 per month. Luncheons and dinners are served. The average total bill (excluding tax and tip) is $9 per customer. Azarski's present variable costs average $4.80 per mea 1. How many meals must be served to attain a profit before taxes of $4,200 per month? 2. What is the break-even point in number of meals served per month? 3. Azarski's rent and other fixed costs rise to a total of $14,700 per month. Assume that d variable costs also rise to $5.75 per meal. If Azarski increases her average price $11, how many meals must she now serve to make $4,200 profit per month? 4. Azarski's accountant tells her she may lose 0% of her customers if she increases her prices. If this should happen, what would be Azarski's profit per month? Assume that the restaurant had been serving 3,500 customers per month. 5. To help offset the anticipated 10% loss of customers, Azarski hires a pianist to per form for 4 hours each night for $1,000 per month. Assume that this would increase the total monthly meals from 3,150 to 3,450. Would Azarski's total profit change? By how much

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Fundamentals

Authors: Marlene Davies, John Aston

1st Edition

0273711733, 978-0273711735

More Books

Students also viewed these Accounting questions