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Speclal - Order Pricing Barry's Bar - B - Que is a popular lunch - time spot. Barry is consclentious about the quality of his

Speclal-Order Pricing Barry's Bar-B-Que is a popular lunch-time spot. Barry is consclentious about the quality of his meals, and he has
a regular crowd of 600 patrons for his $5 lunch. His varlable cost for each meal is about $2, and he figures his fixed costs, on a dally
basls, are about $1,200. From time to time, bus-tour groups with 50 patrons stop by. He has welcomed them because he has capacity
to seat 700 diners in the average lunch perlod, and his cooking and walt staff can easlly handle the additional load. The tour operator
generally pays for the entire group on a single check to save the walt staff and cashler the additional time. Due to competltive
conditions in the tour business, the operator is now asking Barry to lower the price to $3.50 per meal for each of the 50 bus-tour
members. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Required:
1-a. What is the incremental profit (loss) per bus-tour meal?
1-b. Should Barry accept the bus-tour offer?
2-a. At least once per month, the tour company is in a position to guarantee 200 patrons (or four bus loads) In a single day. On those
days, the tour company is asking for an even lower price of $3.00 per meal. What is the incremental profit (loss) for each meal?
2-b. Is the offer financlally attractive?
Complete this question by entering your answers in the tabs below.
Req 2 A
At least once per month, the tour company is in a position to guarantee 200 patrons (or four bus loads) in a single day. On
those days, the tour company is asking for an even lower price of $3.00 per meal. What is the incremental profit (loss) for
each meal?
I only need the answer to 2A!!!!
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