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The current average weekly trading results of the Swish Restaurant in Sumtown are shown below: (R) (R) Turnover 2 800 Operating costs: Materials 1 540

The current average weekly trading results of the Swish Restaurant in Sumtown are shown below:

(R) (R)

Turnover 2 800

Operating costs:

Materials 1 540

Power 280

Staff 340

Building occupancy costs 460 2 620

Profit ` R180

The average selling price of each meal is R4, materials and power may be regarded as a variable cost that varies with the number of meals provided. Staff costs are semi-variable with a fixed cost element of R200 per week; the building occupancy costs are all fixed.

Calculate the number of meals required to be sold in order to earn a profit of R300 per week?

A.

660

B.

880

C.

700

D.

800

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