Question

A restaurant has fixed costs of $147.50 per day and an average unit cost of $5.75 for each meal served. If a typical meal costs $7, how many customers must eat at the restaurant each day for the owner to break even?

Answer 1

Answer:

The answer is 118.

Step-by-step explanation:

First we need to subtract the meal cost from average unit cost for each meal:

$7-5.75=1.25$

A restaurant profits 1.25$ for each meal. If we divide fixed cost to profit for each meal:

$147.5/1.25=118$

The restaurant have to sell 118 meals at least each day for the owner to break even