SECTION B (80 marks) Answer ALL FOUR questions in this section. Question 1 (20 marks) Nancy Restaurant has a weekly profit as follows: 77,900 Weekly Sales (average price per meal is $95) Operating costs: Materials Electricity (70% variable costs, 30% fixed costs) Staff costs Rental costs Profit per week 20.025 1.850 17,800 23,300 62.975 14.925 Nancy, the owner, has estimated that if the restaurant starts to sell take-away meals as well as restaurant meals, the following will result: (1) Take-away sales would be 510 meals per week, at an average selling price of $38 with an average variable cost of $25. (2) Additional fixed costs would be $6,800 per week. Take-away sales would attract more customers to the restaurant, and for every ten take-away sales, there would be one extra sale of restaurant meal. (4) Total staff and rental costs would remain the same every week. Required: (a) For the restaurant meals, calculate: (1) (ii) the total contribution margin per week, and the contribution margin per restaurant meal. (3 marks) (3 marks) If the take-away service is introduced, calculate: b) the contribution margin per take-away meal, (4 marks) (ii) the total contribution margin gained from the take-away meals (4 marks) (iii) the change in the weekly profit. (6 marks)