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The Wholesome Bufet offers an all you-can-eat buffet meal for $28 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries,
The Wholesome Bufet 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 fixed costs for the restaurant are $136,400 per month when the restaurant serves meals up to 13,600 guests in that month. If the restaurant were to serve more than 13,600 guests in any given month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of $25,000 per month. The variable cost of food is $12 per guest. Requirement 1. What is the restaurant's cost equation for estimating costs if the number of guests to be served is up to 13,600 guests per month? Requirement 2a?the restarat were to serve 1240 guests in May, what would be the estimated to a cos Use the cost ea ation from Require men n the restaurant were to serve 12.400 guests in May, the estimated total cost would be $ Requirement 2b. If the restaurant were to serve 12.400 guests in May, what would be the average cost per guest? t the restiaurant were to serve 12.400 guests in May, the average cost per guest would be s Requirement 3a. If the restaurant were to serve 10.800 guests in June, what would be the estimated total cost using the cost equation from Requirement 17 the restaurant were to serve 10,800 guests in June, the estimated total cost using the cost equation from Requirement 1 would be S Requirement It the restaurant were to serve 10,800 guests in June, the estimated total cost using the average cost per guest from 3b. If the restaurant were to serve 10,800 guests in June, what would be the estimated total cost using the average per guest cost from Requirement 2b? 2b would be $ Requirement 3c. Why is there a diflerence in the two cost estimates? There is a diflerence in the two cost estimates because the average cost per guest V as volume changes, due to the of the buffet's costs. The fixed cost per V as volume decreases, while the variable cost per unit
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