The Richardson Buffet offers an all-you-can-eat buffet meal for $25 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the restaurant are $159,600 per month when the restaurant serves meals up to 13,900 guests in that month. If the restaurant were to serve more than 13,900 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 13,900 guests per month? y = 10 X + 159600 Requirement 2a. If the restaurant were to serve 13,300 guests in May, what would be the estimated total cost (Use the cost equation from Requirement 1.) If the restaurant were to serve 13,300 guests in May, the estimated total cost would be 292600 Requirement 2b. If the restaurant were to serve 13,300 guests in May, what would be the average cost per guest? If the restaurant were to serve 13,300 guests in May, the average cost per guest would be 22 Requirement 3a. If the restaurant were to serve 11,800 guests in June, what would be the estimated total cost using the cost equation from Requirement 1? If the restaurant were to serve 11,800 guests in June, the estimated total cost using the cost equation from Requirement 1 would be 277600 Requirement 3b. If the restaurant were to serve 11,800 guests in June, what would be the estimated total cost using the average per guest cost from Requirement 2b? If the restaurant Sare to ARIA 11 on create in leatha stimated total contraintha sa nast marrant fran Requirement 3b. If the restaurant were to serve 11,800 guests in June, what would be the estimated total cost using the average per guest cost from Requirement 2b? If the restaurant were to serve 11,800 guests in June, the estimated total cost using the average cost per guest from Requirement 2b would be 23.52 Requirement 3c. Why is there a difference in the two cost estimates? as volume changes, due to the fixed component of the buffet's costs. The fixed cost per unit increases as There is a difference in the two cost estimates because the average cost per guest changes volume decreases, while the variable cost per unit remains constant. Requirement 4. What is the restaurant's cost equation for estimating costs if the number of guests to be served is more than 13,900 guests per month? y = 10 X + 159600 Requirement 5. If the restaurant were to serve 15,000 guests in July, what would be the estimated total cost? (Use the cost equation from Requirement 4.) If the restaurant were to serve 15,000 guests in July, the estimated total cost using the cost equation from Requirement 4 would be
