SOLUTION: 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 ea
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Question 456906: 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? Found 2 solutions by mananth, htmentor:Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website! let persons eating be x
break even
143.75+5.75x=7x
143.75 = 1.25x
143.75/1.25=x
when 115 persons eat it is break even.
so x> 115
You can put this solution on YOUR website! 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?
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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:
1.25x=143.75
This gives x = 115
To make a profit, R must be > 0
Therefore, they must serve 116 customers to make a profit
