Lances Diner has a hot-lunch special each weekday and Sunday afternoon. The cost of food and other

Question:

Lance’s Diner has a hot-lunch special each weekday and Sunday afternoon. The cost of food and other variable costs for each meal served is $3.50; weekly fixed costs (e.g., building depreciation and equipment rental costs) are $6,000, regardless of how many days the diner is open per week. Lance has an average of 500 customers per day. What is the lowest price in total (not per meal) that 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 per meal that Lance should charge for the hot-lunch special served on weekdays and Sunday afternoons?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Management A Strategic Emphasis

ISBN: 9781259917028

8th Edition

Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith

Question Posted: