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faust18 [17]
3 years ago
9

Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7

. Daily fixed costs are $1,710, and variable costs are $4 per meal. With a capacity of 950 meals per day, the restaurant serves an average of 900 meals each day.Requried:a. Determine the current average cost per meal.b. A busload of 30 Girl Scouts stops on its way home from the San Bernardino National Forest. The leader offers to bring them in if the scouts can all be served a meal for a total of $150. The owner refuses, saying he would lose $0.60 per meal if he accepted this offer. How do you think the owner arrived at the $0.60 figure? Comment on the owner's reasoning.c. A local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman's employees one meal each day at a special price of $4.50 per meal. Should the restaurant owner accept this offer? Why or why not?
Business
1 answer:
mestny [16]3 years ago
4 0

Answer:

Nature's Garden

a. Determination of the current average cost per meal:

Variable cost per meal = $3,800 ($4 x 950) based on full capacity

Fixed costs per day =        $1,710

Total costs =                     $5,510

Average cost per meal = $5,510/950 = $5.80

b. Girl Scouts' offer of $150 for 30 girls:

Offered price per person = $5 ($150/30)

Projecting a loss of $0.60 per meal, this gives a total loss of $18 ($0.60 x 30)

Projected revenue from the offer = $150 + $18 = $168

Projected revenue per meal = $168/30 = $5.60

Actual revenue to be received per meal = $5.00

Loss of $0.60

The owner arrived at the $0.60 loss because his total costs per meal was $5.60.

c. Since the variable cost per meal is $4, the restaurant owner could accept the offer if the additional 300 meals will not increase his daily fixed costs due to lack of capacity.  If the fixed costs increase with this addition, then it may not be reasonable to accept the offer.  Based on this offer, the contribution to defraying fixed costs, given present capacity, is only $0.50 ($4.50 - $4) per meal.

Explanation:

Selling price of chef's salad = $7

Daily fixed costs = $1,710

Variable costs per meal = $4

Meals capacity per day = 950

Average meals = 900

Nature's Garden has a fixed cost of $1,710 based on current capacity of 950 meals per day.  The fixed cost may increase with increasing capacity.  This fact must be borne in mind when making decisions.

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Answer:

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   plan 2 : worker earning y  = 0.5x + 0.5, unit labor = (0.5x + 0.5) / x

C) At 128%

D ) plan D IS PREFERABLE

Explanation:

In the first case Benefits are split : 30% to worker , 70% to company ( up to 120% ) performance

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B) The equations for worker earnings and normalized unit labor costs for each scheme

Plan 1 :

y  ( percentage earning of worker ) = 1

unit labor cost = Y / 1

y = 0 - 30

unit labor = 0.3 / x

y = x - 0.14  therefore unit labor = \frac{x-(0.14)}{x}

plan 2 :

y  ( percentage earning of worker ) = 1,   y  = 0.5x + 0.5

unit labor cost :  Y / 1  =  (0.5x + 0.5) / x

C )  The point at which the two plans break even

0.5x + 0.5 = x - 0.14

0.5 + 0.14 = x - 0.5x

0.64 = x(1 - 0.5 )

x = 0.64 / 0.5 =  1.28 = 128%

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5 0
3 years ago
Brandon is looking to invest for retirement, which he hopes will be in 30 years. He is looking to invest $39,500 today in U.S. T
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Answer:

e. $82,854

Explanation:

Assuming compounding occurs only once a year, the future value of a $39,500 investment for 30 years at a rate of 2.50% per year is determined by:

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At the end of 30 years, Brandon will have $82,854.

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Due to the rise of large-scale production, the influx of peasants to urban areas to find work, and the development of a system o
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Answer:

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these type of system is used in society from centuries and long time back before money was introduced.

8 0
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Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar
meriva

Answer:

$ 102,100

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Saving in Incremental Cost of Repair of old lift

$ (45,000)

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$ (102,100)

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Consider the supply and the dam and of product Z:
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Answer:

b

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i think b

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