Question

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

Answer 1

Answer:

$ 1,345,20

Explanation:

Fixed Expenses ( daily )

  $

4.88  Rental:  $ 122 /  25 days

0.92  Insurance: $ 23 / 25  days

5.00  Lost Sale

10.80  Total  

                             $

Sales       2,260.00  226 u x $ 10,00

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

Gross Mg       1,356.00  

Fiixed costs        10.80  Daily expenses ( fixed )

Profit        1,345.20