The Pepper Restaurant is open daily serving breakfast, lunch and dinner. The

restaurants fixed cost are $24,000 per month while variable costs are estimated at

$8 per meal. The average total bill is $12 per customer.

a. Compute the number of meals that must be serve if the restaurant wishes to earn a

profit of $8,000 per month.

b. Compute the break-even point in meals.

c. How much sales revenue must the restaurant make to achieve break-even point?

d. Assume that fixed cost increase to $30,000. How many additional meals must be

served if the restaurant wishes to earn the same profit?

e. If the fixed cost is $30,000 per month and the restaurant wants to achieve an annual

profit of $140,000, how many meals must the restaurant sell each month?