Question

Danilo and his wife operate a restaurant where they sell all their meals for $13.00 each. the markup on each meal is $4.50 and overhead expenses are 19.00% of cost.

how much does it cost them to make each meal?

Answer 1

To find the cost to make each meal at Danilo's restaurant, subtract the markup from the sale price and account for overhead. Markup is $4.50, and overhead is 19% of the cost. The final calculated cost per meal is $7.14.

Step-by-step explanation:

To calculate the cost of making each meal at Danilo's restaurant, we need to subtract the markup from the selling price. The selling price of each meal is $13.00, and the markup is $4.50. Therefore, the cost before accounting for overhead expenses is $13.00 - $4.50.

Once we have the preliminary cost, we need to consider the overhead expenses, which are 19.00% of the cost. To find the initial cost, let's denote it as C. We know that $13.00 = C + $4.50, so the preliminary cost of making each meal is $13.00 - $4.50 = $8.50.

Since overhead expenses are 19.00% of C, we can write this as 0.19 * C. To find the actual cost, we subtract the overhead expenses from the initial cost: C = $8.50 - (0.19 * C). Solving this, we find that C = $8.50 / (1 + 0.19), which equals $8.50 / 1.19.

The final answer after calculating is C = $7.14. Therefore, it costs Danilo and his wife $7.14 to make each meal before the markup and overhead expenses are added.