Question

A restaurant prepares 200.00 pizza slices and sells them at a rate of $10.00/slice. Expenses for the restaurant include raw material for pizza at $4.00 per slice, $122.00 for monthly rental and monthly insurance of $23.00. Lost sale are taken as $5.00 per unhappy customer. Leftover pizza can be sold for $2.00. The restaurant is open only for 25 days in a month. Today there was a party at nearby office so the demand for pizza went up to 226.00 slices. How much profit could the restaurant earn today?

Answer 1

$ 1,345,20

Step-by-step explanation:

Fixed Expenses ( daily )

$

4.88 Rental: $ 122 / 25 days

0.92 Insurance: $ 23 / 25 days

5.00 Lost Sale

10.80 Total

$

Sales 2,260.00 226 u x $ 10,00

Cost 904.00 226 u x $ 4,00 ( Raw material per slice )

Gross Mg 1,356.00

Fiixed costs 10.80 Daily expenses ( fixed )

Profit 1,345.20