Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $9.44 per slice, $155.00 as monthly rental and $62.00 monthly

image text in transcribed

Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $9.44 per slice, $155.00 as monthly rental and $62.00 monthly as insurance. A restaurant sells pizza at a rate of $14.44 slice. How many slices should the restaurant sell in a month to break even? Answer format: Number: Round to: 0 decimal places. You run a school in Florida. Fixed monthly cost is $5,033.00 for rent and utilities, $5,990.00 is spent in salaries and $1,251.00 in insurance. Also every student adds up to $96.00 per month in stationary, food etc. You charge $600.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,069.00, salaries to $6,318.00 and insurance to $2,255.00 per month. Variable cost per student will increase up to $164.00 per month. However you can charge $1,046.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Answer format: Number: Round to: 0 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Banking And Finance Managing The Moral Dimension

Authors: James Lynch

1st Edition

1855731762, 978-1855731769

More Books

Students also viewed these Finance questions