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Project Description:

nature's garden, a new restaurant situated on a busy highway in pomona, california, specializes in a chef's salad selling for $7. daily fixed costs are $1,200, and variable costs are $4 per meal. with a capacity of 800 meals per day, the restaurant serves an average of 750 meals each day.


a. determine the current average cost per meal.

b. a busload of 30 girl scouts stops on its way home from the san bernardino national forest. the leader offers to bring them in if the scouts can all be served a meal for a total of $150. the owner refuses, saying he would lose $0.60 per meal if he accepted this offer. how do you think the owner arrived at the $0.60 figure? comment on the owner's reasoning.

c. a local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman's employees one meal each day at a special price of $4.50 per meal. should the restaurant owner accept this offer? why or why not?
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Price Type: Negotiable

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