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You are the cost accounting manager for Dave's Seafood Restaurant. You have just received word that, due to the COVID 19 Virus, you must suspend all operations except take out. You operate in one location in Ct. , have 20 full and part time employees and two departments (meals and liquor) with 14 employees for food and 6 for liquor. All employees are variable and are paid $14 per hour and work an average of 1,200 per year each.
Question 1: Assume you originally planned to sell each meal at $22 and each bar beverage at $8. What was you original budgeted quantity.
Question 2: What is your original break even quantity of meals and beverages.
Question 3: Dave estimates that after he complies with the order, liquor sales will be $0 and food sales will be $600,000.
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