Question

Colettes cafe serves 1,800 guest per week , and the average check is $7.50 per guest. If the establishment increases its customer count by 4% by how much will annual sales increase?

Answer 1

The increase in customer count by 4% at Colette's cafe results in an additional 72 guests per week, leading to an increase in annual sales by $27,080.

Step-by-step explanation:

To calculate the increase in annual sales for Colette's Cafe after increasing its customer count by 4%, we first need to find the current weekly sales, then calculate the new weekly customer count, and finally determine the new weekly and annual sales.

Current weekly sales are calculated by multiplying the number of guests by the average check: 1,800 guests × $7.50 per guest = $13,500 in sales per week.

The customer count increase of 4% on 1,800 guests is 1,800 × 0.04 = 72 additional guests per week. The new customer count per week is then 1,800 + 72 = 1,872 guests.

New weekly sales are 1,872 × $7.50 = $14,040. To find the annual increase, we first calculate the new annual sales by multiplying the new weekly sales by the number of weeks in a year: $14,040 × 52 weeks = $729,080.

Then we subtract the original annual sales (which were $13,500 × 52 weeks = $702,000) from the new annual sales to find the increase: $729,080 - $702,000 = $27,080.