SOLUTION: A restaurant has a fixed cost of $147.50 per day and an average unit cost of $5.75 per meal served. If a typical meal cost $7, how many customers must eat at restaurant each day f
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: A restaurant has a fixed cost of $147.50 per day and an average unit cost of $5.75 per meal served. If a typical meal cost $7, how many customers must eat at restaurant each day f
Log On
Question 564286: A restaurant has a fixed cost of $147.50 per day and an average unit cost of $5.75 per meal served. If a typical meal cost $7, how many customers must eat at restaurant each day for the owner to make a profit? Answer by ad_alta(240) (Show Source):
You can put this solution on YOUR website! We need to find out the minimum number of people (n) such that 147.5+5.75n<7n. We are comparing the costs on the left to the profit on the right. In practice we often solve for when the sides are equal, and then say "more customers than .... etc." Solving 147.5/(7-5.75) gives n=118. We will "break even" if 118 customers eat, so we need more than that.
