Question: Callahan s Calabash Seafood Restaurant is a family owned business started by

Callahan’s Calabash Seafood Restaurant is a family-owned business started by Marc Callahan over 10 years ago. Callahan’s is only open Thursday through Saturday and only serves dinner. In the last several months, Marc has seen a drop-off in business. Just last month the restau1rant broke even. Marc looked over the records and saw that the restaurant served 1,000 meals (variable cost is $10 per meal) and paid other bills totaling $25,000. He looked over the bills and realized that they all represented fixed costs. The restaurant currently breaks even at 1,000 meals.

Calculate Callahan’s average selling price for a meal.

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  • CreatedMarch 11, 2015
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