Question: Break-Even Price Problem Note: you will need a calculator to answer this question. A restaurant/catering business incurs a monthly expense of $3,000 for building rent.
Break-Even Price Problem Note: you will need a calculator to answer this question. A restaurant/catering business incurs a monthly expense of $3,000 for building rent. It also has to cover $5,000 in salaries and $500 for the accountant's fees on a monthly recurring basis. The catering business can cater up to 1,500 people per month For each guest at a catered event, it incurs an expense of $30 per guest to procure food supplies. It also has to pay $80 per guest (at cost) to cover the average liquor consumed by each guest. Help the management determine the breakeven price it should charge per guest for its catered events Your answer should be a calculated dollar amount representing the break-even price per guest. Assume 1500 gyests and the fixed/variable costs noted above
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