Question 1209494
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Jane’s Seafood Diner serves 200 meals a day at an average price of $20. 
The variable cost of each meal is $10, and the fixed costs of running the restaurant are $1,750 a day.
(a) What profit does the restaurant make?
(b) What is the average cost of a meal?
(c) By how much would the average cost of a meal fall if the number of meals served rose to
250 a day 
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(a)  The revenue is  R = 200 meals * 20 dollars.

     The total cost for the restaurant is  C = 200 meals * 10 dollars + 1750 dollars.

     The profit is  R - C = 200*20 - (200*10 + 1750) = 250 dollars.



(b)  The average cost of the meal is  {{{(200*10 + 1750)/200}}} = 18.75 dollars per meal.



(c)  By how much would the average cost of a meal fall = {{{18.75 - (250*10 + 1750)/250}}} = 1.75 dollars per meal.
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Solved.


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