QUESTION 1 Bottomless Pit is a new all-you-can-eat buffet restaurant that target budget conscious buffet eaters. After two months, the average...
Bottomless Pit is a new all-you-can-eat buffet restaurant that target budget conscious buffet eaters. After two months, the average number of customers and the average cost of food was recorded and reproduced below.
Week Number of customers Cost of food ($)
1 4,892 59,380
2 3,675 45,350
3 3,250 41,260
4 3,375 43,260
5 4,285 47,950
6 4,328 48,500
7 4,684 51,200
8 4,484 49,200
9 4,062 46,600
In addition to the food costs listed, the following monthly costs are also incurred.
Other direct materials 1.00
Direct labour 3.00
Overhead costs 0.50
Selling costs 0.50 12,000
Administrative costs 25,000
The cost of the buffet is $29 per person.
(a) Using the power cost formula in part (a) of Question 1, calculate the breakeven point for the restaurant in:
(i) number of customers; and
(b) Bottomless Pit is considering running a special where the 4th diner eats for free. If it is estimated that this will increase the number of customers by 20%, is this a good idea?
(c) Under what circumstances would the opposite for part (b) be true? (i.e. if it was a good idea, under what circumstances would it be a bad idea and vice versa)
- 1/6, 2/9, and 7/36 least to greatest
- if i walk for 2hrs and 40 mins at 8 kph, how far will i have walked?
- If a 3-d shape has 12 edges and 8 faces, how many vertices does it have?
- What Catergories of population change does the 2000 census report identify and describe?
- need to find meaning of words for TD but cant find them anywhere the words are MONONER,POMONER,ACRCIC,POOTHENE,PVC,HOLY CARBONATE AND VALSON
- In a office building the ratio of offices to windows to doors is 25:55:35. what is the ratio of...
- how did reformers try to end government corruption and limit the influence of big business
- 6. Describe the literary and cultural life of the period, including the widespread trent towards. 1865-1900
- if the economy is presently producing 12 units of guns and 4 units of butter, what is the opportunity cost...