Lance's Diner has a hot lunch special each weekday and Sunday afternoon. Food and other variable costs

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Lance's Diner has a hot lunch special each weekday and Sunday afternoon. Food and other variable costs for the lunch are $3.50, and the daily fixed costs are $1,000. Lance has an average of 500 customers per day. What is the lowest price Lance should charge for a special group of 200 that wants to come on Saturday for a family reunion? What should be the lowest price Lance charges on a normal weekly basis?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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