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Sophia's Restaurant served 5,700 meals last quarter. Sophia recorded the following costs with those meals. Required: Suppose that Sophia expects to serve 20 percent more
Sophia's Restaurant served 5,700 meals last quarter. Sophia recorded the following costs with those meals. Required: Suppose that Sophia expects to serve 20 percent more meals in the next quarter. Unit variable costs are expected to remain unchanged. However, Sophia knows that if the restaurant serves over 6,270 meals in a quarter, she must hire an additional manager (part-time) at a cost of $7,650 for the quarter. Other fixed costs are expected to increase by 10 percent. Calculate the unit cost and the total cost if 6,840 meals are served next quarter. (Round "Unit costs" answer to 2 decimal places.)
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