The Jackson Buffet offers an all-you-can-cat buffet meal for $28 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the restaurant are $138,600 per month when the restaurant serves meals up to 13,500 guests in that morth. If the restaurant were to serve more than 13,500 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of $20,000 per month. The variable cost of food is $10 per guest Read the requirements Requirement 1. What is the restaurant's cost equation for estimating costs if the number of guests to be served is up to 13,500 guests per month? y=$ +$ Requirement 2a. If the restaurant were to serve 12.600 guests in May, what would be the estimated total cost (Use the cost equation from Requirement 1.) If the restaurant were to serve 12.600 guests in May, the estimated total cost would be $ Requirement 2b. If the restaurant were to serve 12,600 guests in May, what would be the average cost per guest? If the restaurant were to serve 12,600 guests in May, the average cost per quest would be Requirement 3a. If the restaurant were to serve 11. 200 guests in June, what would be the estimated total cost using the cost equation from Requirement 1? If the restaurant were to serve 11,200 guests in June, the estimated total cost using the cost equation from Requirement 1 would be $ Requirement 3b. If the restaurant were to serve 11.200 guests in June, what would be the estimated total cost using the average per quest cost from Requirement 2b? If the restaurant were to serve 11,200 guests in June, the estimated total cost using the average cost per quest from The Jackson Buffet offers an all-you-can-eat buffet meal for $28 per person. The restaurant employs ten salaried employees. Rent for the building employee salaries and other foxed costs for the restaurant are $138.600 per month when the restaurant serves meals up to 13.500 guests in that month. If the restaurant were to serve more than 13,500 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of $20,000 per month. The variable cost of food is $10 per guest Read the requirements would be $ Requirement 3b. If the restaurant were to serve 11 200 guests in June, what would be the estimated total cost using the average per quest cost from Requirement 207 If the restaurant were to serve 11 200 guests in June, the estimated total cost using the average cost per guest from Requirement 2b would be $ Requirement 3c. Why is there a difference in the two cost estimates? of the There is a difference in the two cost estimates because the average cost per guest as volume changes, due to the buffet's costs. The fixed cost per unit as volume decreases, while the variable cost per unit Requirement 4. What is the restaurant's cost equation for estimating costs of the number of guests to be served is more than 13,500 guests per month? y=s xts Requirement 5. If the restaurant were to serve 14,900 guests in July, what would be the estimated total cost? (Use the cost equation from Requirement 4.) If the restaurant were to serve 14.900 guests in July, the estimated total cost using the cost equation from Requirement 4 would be 5
