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Category > Management Posted 19 Dec 2017 My Price 10.00

comment on the restaurant owner's reasoning

A group of 30 Lincoln students are returning from LakeTahoe on a ski trip.They stop offat a restaurant outside of Sacramento.This restaurant has a capacity of 800 meals per day.  It currently serves 750 meals per day.

The dailyfixed costs are $1,200 per day.The main meal is a Caesar salad that sells for $9; the unit variable cost is $5 per salad.The student leader of the bus trip offers to bring the students into the restaurant, if the total payment for

30 meals could be $180.   The restaurant owner refuses because he says that he would lose on average $0.60 per meal.

Please comment on the restaurant owner's reasoning. Is he correct?  What would you show the restaurant owner to change his mind?

Answers

CourseLover
(12)
Status NEW Posted 19 Dec 2017 02:12 PM My Price 10.00

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