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(Solved): 1) A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw materia ...



1) A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $4.00 per slice, $1,249.00 as monthly rental and $290.00 monthly as insurance. They consider the cost of lost sales as $4.00 per item. They are able to sell any leftover sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $15.00/sandwich. Today there was a party at nearby office so the demand for sandwiches rose to 210.00. How much profit did the restaurant earn today? 2) You run a nail salon. Fixed monthly cost is $5,984.00 for rent and utilities, $5,725.00 is spent in salaries and $1,655.00 in insurance. Also every customer requires approximately $2.00 in supplies. You charge $79.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,787.00, salaries to $6,597.00 and insurance to $2,470.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $150.00 per service. At what point will you be indifferent between your current location and the new location? ROUND 2 DECIMAL PLACES.

 



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Answer : Question-1): Cost of a month's rent per day = 1,247 / 25 = 49.88 Insu
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