Question

Your restaurant plans to spend $1,000 on social media ads. Your average meal sells for $10 and food cost is 30%. How many additional meals do you need to sell to breakeven on your advertising

Answer 1

Answer:

Number of meals = 100

Explanation:

The amount that the restaurant plan to spend on ads = $1000

The average selling price of meal = $10

The cost of food is = 30%

At breakeven, the total revenue is equal to total cost.

Total cost of advertsing = total revenue  

So, the number of meals = $1000 / 10 = 100