Question

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 $370: Weekly fixed costs (eg, building depreciation and equipment rental costs) are $7,600, 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 mear that lance should charge for the hot-lunch special served on weekdays and Sunday afternoons? 

Answer 1

S.No.	Particulars	Que a*	Que b*
a	Variable cost per meal	370	370
b	Fixed cost per week	7,600	7,600
c	Customers per day	400	400
d	Customers per week (c*7days)	2,900	2,800
		(400*7+100)
e	Variable cost per week (d*a)	1,073,000	1,036,000
f	Total cost (b+e)	1,080,600	1,043,600
g	Cost per customer	372.62	372.71
	Answers	37,262.07	372.71
		(g*100)