Lance's Diner has a hot-lunch special each weekday and Sunday afternoon. The cost of food and other variable costs for each meal served is $4.60; weekly fixed costs (e.g., building depreciation and equipment rental costs) are $7,200, regardless of how many days the diner is open per week. Lance has an average of 400 customers per day. a. What is the lowest price in total (not per meal) that Lance should charge for a special group of 100 that wants to come on Saturday for a family reunion? b. What should be the lowest price per meal that Lance should charge for the hot-lunch special served on weekdays and Sunday afternoons? (Round "Lowest price per meal" answer to 2 decimal places.) a b. Lowest price in total Lowest price por meal
Lance's Diner has a hot-lunch special each weekday and Sunday afternoon. The cost of food and other variable costs for each meal served is $4.60; weekly fixed costs (e.g., building depreciation and equipment rental costs) are $7,200, regardless of how many days the diner is open per week. Lance has an average of 400 customers per day. a. What is the lowest price in total (not per meal) that Lance should charge for a special group of 100 that wants to come on Saturday for a family reunion? b. What should be the lowest price per meal that Lance should charge for the hot-lunch special served on weekdays and Sunday afternoons? (Round "Lowest price per meal" answer to 2 decimal places.) a b. Lowest price in total Lowest price por meal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lance's Diner has a hot lunch special each weekday and Sunday afternoon. The cost of food and other variable costs for each meal
served is $4.60; weekly fixed costs (e.g., building depreciation and equipment rental costs) are $7,200, regardless of how many days
the diner is open per week. Lance has an average of 400 customers per day.
a. What is the lowest price in total (not per meal) that Lance should charge for a special group of 100 that wants to come on Saturday
for a family reunion?
b. What should be the lowest price per meal that Lance should charge for the hot-lunch special served on weekdays and Sunday
afternoons? (Round "Lowest price per meal" answer to 2 decimal places.)
a
b.
Lowest price in total
Lowest price
per meal
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