The Pureife Buffet offers an as-you-can-eat butfet meal for $34 per person. The restaurant employs ten salarled employees. Rent for the building. employee salaries, and other fixed costs for the restaurant are $164,400 per month when the restaurant serves meals up to 14,200 guests in that month. If the restaurant were to serve more than 14,200 guests in any given month, If would need to hire two additional servers and two additional kitchen staff for an additicnal fixed cost of $25,000 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 14,200 guests per month? y=x+ Requirement 2a. If the restasiant were to serve 13,700 guests in May, what would be the esimated total cost (Use the cost equation from Requirement 1.) If the restaurant were to serve 13,700 guests in May, the estimated total cost would be Requirement 2b. If the restaurant were to serve 13.700 guests in May, what would be the average cost per guest? If the restaurant were to serve 13,700 guests in May, the average cost per guest would be Requirement 3a, if the restaurant were to senve 12.300 guests in June, what would be the estimated total cost using the cost equation from fiequirement 1 ? If the fectaurant were to serve 12.300 guests in June, the estimated total cost uning the cost equation from Recuirement 1 Would be Requirement 3b. If the restaurant were to serve 12,300 guests in June, what would be the estimated total cost using the average per guest cost from Requirement 2 b? If the restaurant ware to serve 12,300 guests in June, the estimated total cost using the average cost per guest from Requirement 2b would bo Requirement 3e. Why is there a difference in the two cost estimates? There is a diference in the two cost estimates because the average cost per guest as volume changes, due to the of the buffet's costs. The fixed cos per unit as volume decreases, while the variable cost per unit Requirement 4. What is the restaurant's cost equation for estimating costs if the number of guests to be served is more than 14,200 guests per month? Requirements 1. What is the restaurant's cost equation for estimating costs if the number of guests to be served is up to 14,200 guests per month? 2. If the restaurant were to serve 13,700 guests in May, what would be the: a. Estimated total cost? (Use the cost equation from Requirement 1.) b. Average cost per guest? 3. If the restaurant were to serve 12,300 guests in June, what would be the: a. Estimated total cost using the cost equation from Requirement 1 ? b. Estimated total cost using the average per guest cost from Requirement 2b ? c. Why is there a difference in the two cost estimates? 4. What is the restaurant's cost equation for estimating costs if the number of guests to be served is more than 14,200 guests per month? 5. If the restaurant were to serve 15,300 guests in July, what would be the estimated total cost? (Use the cost equation from Requirement 4.)
