TUowns and operates a food outlet. Their fixed costs are $21,000 per month and serves luncheons and dinners. The average total bill (excluding tax and tip) is $18 per customer. TU's present variable costs average $9.60 per meal.

Required:

1.What is the break-even point in number of meals served per month?

2.TU's rent and other fixed costs rise to a total of $29,400 per month. If variable costs rise to $11.50 per meal and if Genevieve increases her average price to $22, how many meals must be served to make $8,400 profit per month?

3.TU's accountant thinks that theymay lose 10% of her costumers if prices are increased to $22. If this should happen what would be TU's profit per month? Assume that the restaurant had been serving 3,500 costumers per month.