Question

Please help me with this word problem!!!

Answer 1

Answer:

The number of customers needed to break even is

$\simeq 6775.$

Step-by-step explanation:

Rent per month = $ 7200

Rent per year, $ $7200 \times 12$

                        = $ 86400 -------------(1)

Insurance per year = $ 4200 ---------(2)

Total  direct cost  for 2 servers (withoout  tax) per year,

= $ $2 \times 15 \times 8 \times 5 \times 50$

= $ 60000

Total cost for helper ( without tax) per year,

= $ $4 \times 15 \times 5 \times \50$

= $ 15000

Total cost for employees per year (without tax),

= $ (60000 +15000)  = $ 75000

Total cost per year for employees including tax,

$ $\frac {(75000 \times (100 + 6.2 + 1.45)}{100}$

= $ $\frac {(75000 \times 107.65 }{100}$

= $ 80737.5 -----------------------(3)

So,

total cost for running the restaurant (except food)

= (1) + (2) + (3) = $ $(86400 + 4200 + 80737.5)$

= $ 171337.5

Average total profit per customer,

= ( Average per customer payment - average cost of food per customer)

= $ (45.47 - 20.18)

= $ 25.29

So, total number of customer needed to break even,

= $\frac {171337.5}{25.29}$

\simeq   6775