document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=984611>Question 984611</A>: <I><SPAN STYLE=\"word-break: break-all;\"> a restaurant serves meals at an average price of $12. the variable cost of each meal is $8 and fixed costs of running the restaurant amount to $400 per day.<BR>\n" );
document.write( "i) if the restaurant sold 150 meals per day, determine the daily profit the restaurant would make<BR>\n" );
document.write( "ii)  how many meals should the restaurant aim to serve each day inorder to break even<BR>\n" );
document.write( "iii)  if the restaurant were making a loss of $200 per day, what increase in the number of meals served would be required to break even?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #605460 by </B><A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><B>ankor@dixie-net.com(22740)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ankor@dixie-net.com><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=605460\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> a restaurant serves meals at an average price of $12.<BR>\n" );
document.write( " the variable cost of each meal is $8 and fixed costs of running the restaurant amount to $400 per day.<BR>\n" );
document.write( ":<BR>\n" );
document.write( "i) if the restaurant sold 150 meals per day, determine the daily profit the restaurant would make<BR>\n" );
document.write( "Let x = no. of meals sold<BR>\n" );
document.write( "Profit is the revenue (12x) minus the cost (8x+400)<BR>\n" );
document.write( "p(x) = 12x - (8x+400)<BR>\n" );
document.write( "p(x) = 12x - 8x - 400 (removing the bracket changes the sign<BR>\n" );
document.write( "p(x) = 4x - 400<BR>\n" );
document.write( "If x = 150<BR>\n" );
document.write( "p(x) = 4(150) - 400<BR>\n" );
document.write( "p(x) = 600 - 400<BR>\n" );
document.write( "p(x) $200 profit off of 150 meals<BR>\n" );
document.write( ":<BR>\n" );
document.write( "ii) how many meals should the restaurant aim to serve each day inorder to break even<BR>\n" );
document.write( "That's when revenue = cost<BR>\n" );
document.write( "12x = 8x + 400<BR>\n" );
document.write( "12x - 8x = 400<BR>\n" );
document.write( "4x = 400<BR>\n" );
document.write( "x = 100 meals to break even<BR>\n" );
document.write( ":<BR>\n" );
document.write( "iii) if the restaurant were making a loss of $200 per day, what increase in the number of meals served would be required to break even?<BR>\n" );
document.write( "a loss is a negative profit, find how many meals sold for a $200 loss<BR>\n" );
document.write( "Use our profit equation to find x<BR>\n" );
document.write( " 4x - 400 = -200<BR>\n" );
document.write( "4x = -200 + 400<BR>\n" );
document.write( "4x = 200<BR>\n" );
document.write( "x = 200/4<BR>\n" );
document.write( "x = 50 meals cause a $200 loss<BR>\n" );
document.write( "we know the break-even point is 100 meals therefore a 50 meal increase is required.<BR>\n" );
document.write( ":<BR>\n" );
document.write( ";<BR>\n" );
document.write( "Made sense, right?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );