Teir average variable cost per meal. They company wants to make monthly profit of $75 000. How many meals must they sell?
Teir average variable cost per meal. They company wants to make monthly profit of $75 000. How many meals must they sell?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A local restaurant has the best meals in town. The average variable
cost per meal is $22.74 and the desserts are $5.24. Only half of the
patrons order desserts. The restaurant has fixed operating costs of
$112 714 per month. They sell the meals and desserts for four times
their average variable cost per meal. They company wants to make
a monthly profit of $75 000. How many meals must they sell?
Select one:
O A. 2 236
O B. 2 008
O C. 2 803
O D. 2 045
E. 2 468
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