A Local Restaurant Has the Best Meals in Town

question 8

Multiple Choice

A local restaurant has the best meals in town. The average variable cost per meal is $22.74 and the desserts are $5.24. Only half of the patrons order desserts. The restaurant has fixed operating costs of $112 714 per month. They sell the meals and desserts for four times their average variable cost per meal. They company wants to make a monthly profit of $75 000. How many meals must they sell?

• A) 2 045
• B) 2 236
• C) 2 008
• D) 2 803
• E) 2 468

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