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Special - Order Pricing Barry's Bar - B - Que is a popular lunch - time spot. Barry is conscientious about the quality of his
SpecialOrder Pricing Barry's BarBQue is a popular lunchtime spot. Barry is conscientious about the quality of his meals, and he has a regular crowd of patrons for his $ lunch. His variable cost for each meal is about $ and he figures his fixed costs, on a daily basis, are about $ From time to time, bustour groups with patrons stop by He has welcomed them because he has capacity to seat diners in the average lunch period, and his cooking and wait staff can easily handle the additional load. The tour operator generally pays for the entire group on a single check to save the wait staff and cashier the additional time. Due to competitive conditions in the tour business, the operator is now asking Barry to lower the price to $ per meal for each of the bustour members. Negative amounts should be indicated by a minus sign. Round your answers to decimal places.
Required:
a What is the incremental profit loss perbustour meal?
Should Barry accept the bustour offer?
a At least once per month, the tour company is in a position to guarantee patrons or four bus loads in a single day. On those days, the tour company is asking for an even lower price of $ per meal. What is the incremental profit loss for each meal? b Is the offer financially attractive?
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What is the incremental profit loss per bustour meal?
Incremental.profit loss
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