You are thinking of opening a restaurant that will have six four-person tables. Each day the restaurant

Question:

You are thinking of opening a restaurant that will have six four-person tables. Each day the restaurant is open, there are two lunch seatings and three dinner seatings. In addition:

The restaurant will be closed on Monday.

The average lunch check is $20, and you earn a 40 percent profit margin on lunch checks.

The average dinner check is $40, and you earn a 50 percent profit margin on dinner checks.

The fixed cost of running a restaurant is $400,000 per year. Assuming 364 (7 * 52) days in a year, use a data table to show how annual profit changes as percentage of seats filled at each meal varies between 10 percent and 100 percent.

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

Step by Step Answer:

Question Posted: