Question

1. The Party Place Company wants to open a dining hall for group meetings and banquets. A survey of businesses and organizations within a 30 mile radius indicates that the Party Place can expect to provide meeting facilities to 0.75 groups per day for 360 days of the year. On average during the year, 50% of all groups would be expected to want basic food service and 30% are expected to want premium food service. Groups pay a facility rental fee of $80 per meeting. If the group requests basic food service, the facilities fee is reduced by one-half. No facilities fee is charged for groups that request premium food service. Basic food service is provided at a cost of $10 per plate and premium food service is provided at $25 per plate. Groups that request basic food service are expected to average 50 people per group. Groups that request premium food service are expected to average 30 people per group.

Based on this data, address the following requirements:

What is the number of groups that are expected to want premium food service, basic food service, and no food service during one year?

How much revenue can the Party Place expect to generate during its first year of operations?

Answer 1

- Solution P.Nol As per the given dalam :- » The party place Company wants to open a - dining hall for group meetings and banquets. * Since as per the Survey the party place Company can provide meeting facility to ots groups per day. * Total no. of groups for the year - 0.75 X 360 days - 270 groups D Basic food - 135 Groups, Premium food - 81 Groups, No food - 54 Groups

135 How much % food of total groups , No. of groups (270 group) Basic food Service 50.8. Premium food Service 30% I 81 No food service. 2007. 54 a) Groups have to play a rental fee of $ 80. but food How much redu -ction in rental feel fee by each group Basic food service 50.%. $40 Premium No food food Service service 100% 0% I $ 80 * Revenue from basic food = 135 groups x uo - 1$ 5,400

* Revenue from BVO poremium food = 81 groups xo * Rovence from no food = 54 groups x $ 80 - $ 4320 i Total gevence : 5400 + 4320 :$ 9,720 please, plz Kindly "upuote". Thanks.