The Red Cross has a cafeteria in its headquarters that serves lunch to its employees five days a week. The cafeteria typically serves 500 lunches per day, 5 days per week, although it has the capacity to serve at least twice as many before it would have to invest in new equipment or hire new employees. The cost for the equipment and cafeteria employees is $180,000 per year. The cafeteria’s food costs for each meal served are $1.00, and the cafeteria charges $2.50 per meal. An elementary school next door has heard about the cafeteria and offers to send 200 students a day to the cafeteria and pay the Red Cross $1.50 for each student meal. Should the Red Cross take this offer? Why or why not?

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Required solution is given below Assumptions 1 There are 52 Week ie 527 364 days in a year 2 The stu... View the full answer