Reference no: EM133072182
Question - Special Order - 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 $2,000, and variable costs are $4 per meal. With a capacity of 1,650 meals per day, the restaurant serves an average of 1,600 meals each day.
(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 $135. The owner refuses, saying he would lose $0.75 per meal if he accepted this offer. How do you think the owner arrived at the $0.75 figure?
(c) A local businessman on a break overhears the conversation with the leader and offers the owners a one-year contract to feed 300 of the businessman's employees one meal each day at a special price of $4.90 per meal.
Compute the net advantage (disadvantage) of accepting the contract.
Only use a negative sign with your answer to indicate a net disadvantage. Otherwise, do not use negative signs with answers.
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