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A restaurant has fixed costs of $143.75 per day and an average unit cost of $5.75 for each meal served. If a typical meal costs $7, how many customers must eat at the restaurant each day for the owner to make a profit?
Let x = the number of meals served
Then the equation for the revenue is
R = 7x - 5.75x - 143.75
R = 1.25x - 143.75
The break-even point is for R=0:
This gives x = 115
To make a profit, R must be > 0
Therefore, they must serve 116 customers to make a profit