Use the following restaurant details to answer the below questions. • The restau
ID: 1108141 • Letter: U
Question
Use the following restaurant details to answer the below questions.
• The restaurant can seat 50 people at a time.
• Fixed costs for salaries, rent, some utilities, property tax, and advertising run $5,000 per month.
• Variable costs other than food (linens, hourly labor, dishes, disposable supplies) run $3 per customer on average.
•The restaurant is open Tuesday-Saturday for dinner only.
If you want to make a profit of $5,000 per month, how many turns (customers per seat per night) do you need to average?
Explanation / Answer
Total vc per month =$( 3×50)×8=$1200
Total fc per month =$5000
Profit need to earn = $5000
Now total money that need to earn in a month is ($5000+$5000+$1200)= $11200
So the money that need to earn in every day when the restaurant open is $11200÷8 =$1400.
So customers per set per night charge will $(1400÷50)=$28