Reference no: EM133033740
All answers round to 4 decimal points.
1. A restaurant sells pizza at a rate of $13.65/slice. Expenses for the restaurant include raw material for pizza at $8.65 per slice, $198.00 as monthly rental and $63.00 monthly as insurance. How many slices should the restaurant sell in a month to break even?
2. A vendor prepares 100.00 hotdogs every day and sells at $21.00 /piece. For each hot dog, he spends $11.00 in the raw material. Additionally he spends $0.89 for packing each hotdog and monthly $43.00, $18.00, $9.00 as food truck rent, electricity and other expenses respectively. Lost sales are charged at $5.00 per lost sale. Leftover hotdogs can be sold for $3.
On a particular day in June 103.00 people came wanting to buy a hotdog. Determine the vendor's profit for that day? Assume there are 30 days in the month.
3. You run a school in Florida. Fixed monthly cost is $5,117.00 for rent and utilities, $6,453.00 is spent in salaries and $1,130.00 in insurance. Also every student adds up to $93.00 per month in stationary, food etc. You charge $628.00 per month from every student now.
You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,955.00, salaries to $6,455.00 and insurance to $2,075.00 per month. Variable cost per student will increase up to $165.00 per month. However you can charge $1,103.00 per student. At what point will you be indifferent between your current mode of operation and the new option?