A restaurant has the following cost structure

QUESTION

2) A restaurant has the following cost structure:Cost ItemRentWagesUtilitiesEquipment (Depreciation)Average ingredient cost per dishAverage direct labor cost per dish$100 per day$500 per day$50 per day$300 per day$5 per dish$1 per dishA) If the average price of a dish is $15, how many dishes should the restaurant sell to breakeven?FC: Rent ($100) + Wages ($500) + Utilities ($50) + Equipment ($300)= $950P: $15q: ?VC:B) If the restaurant wants to make $400 profit per day, how many dishes should the restaurantsell to break even?C) If the restaurant wants to make $400 profit per day and cannot sell more than 120 dishes aday, what should be the average price of a dish?

ANSWER:

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