Question
The Richardson Buffet offers anall-you-can-eat buffet meal for $28 per person. The restaurant employs ten salaried employees. Rent for thebuilding, employeesalaries, and other fixed costs
The Richardson Buffet offers anall-you-can-eat buffet meal for $28 per person. The restaurant employs ten salaried employees. Rent for thebuilding, employeesalaries, and other fixed costs for the restaurant are $130,000 per month when the restaurant serves meals up to 13,800 guests in that month. If the restaurant were to serve more than 13,800 guests in any givenmonth, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of $19,000 per month. The variable cost of food is $13 per guest.
What is therestaurant's cost equation for estimating costs if the number of guests to be served is up to 13,800 guests permonth?
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