Question
Use the following restaurant details to answer these questions: The restaurant can seat 50 people at a time. Fixed costs for salaries, rents, some utilities,
Use the following restaurant details to answer these questions: The restaurant can seat 50 people at a time. Fixed costs for salaries, rents, some utilities, property tax, and advertising run $5,000 per month Variable costs other than food (linens, hourly labor, dishes, and disposable supplies) run $3 per customer on average. The restaurant is open Tuesday-Saturday for dinner only. a. If the restaurant wants to keep the food cost at 32 percent, what price does the restaurant have to charge for a meal with $3.50 in food ingredients? b. If the average ticket runs $10 per customer with a variable cost of preparing a meal is $5, how many meals (QBE) must be served before the restaurant breaks even? c. If you want to make a profit of $5,000 per month, how many turns (customers per seat per night) do you need to average? Assume four weeks in a month. d. If the best realistic estimate of meals sold in a month is 1,500 (N) for your restaurant and you keep food cost to 35 percent, what average ticket price do you need to hit your profit goal ($5000)?
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