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Elan Coil [88]
3 years ago
5

A restaurant prepares 200.00 pizza slices and sells them at a rate of $10.00/slice. Expenses for the restaurant include raw mate

rial for pizza at $4.00 per slice, $122.00 for monthly rental and monthly insurance of $23.00. Lost sale are taken as $5.00 per unhappy customer. Leftover pizza can be sold for $2.00. The restaurant is open only for 25 days in a month. Today there was a party at nearby office so the demand for pizza went up to 226.00 slices. How much profit could the restaurant earn today?
Business
1 answer:
Vedmedyk [2.9K]3 years ago
6 0

Answer:

$ 1,345,20

Explanation:

<u>Fixed Expenses ( daily )</u>

  $

4.88  Rental:  $ 122 /  25 days

0.92  Insurance: $ 23 / 25  days

<u> 5.00</u>  Lost Sale

10.80  Total  

                             $

Sales       2,260.00  226 u x $ 10,00

Cost          <u>904.00</u>  226 u x $  4,00 ( Raw material per slice )

Gross Mg       1,356.00  

Fiixed costs    <u>    10.80</u>  Daily expenses ( fixed )

Profit        1,345.20  

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