Question

The

OrganicOrganic

Buffet offers an? all-you-can-eat buffet meal for $33 per person. The restaurant employs ten salaried employees. Rent for the? building, employee? salaries, and other fixed costs for the restaurant are $198,000 per month when the restaurant serves meals up to 14,400 guests in that month. If the restaurant were to serve more than 14,400 guests in any given? month, it would need to hire two additional servers and two additional kitchen staff for an additional fixed cost of $24,000 per month. The variable cost of food is $16 per guest.

What is the? restaurant's cost equation for estimating costs if the number of guests to be served is up to 14,400 guests per? month?

2. If the restaurant were to serve 13 200 guests in May?, what would be? the: a. Estimated total? cost? (Use the cost equation from Requirement? 1.) b. Average cost per? guest?

3. If the restaurant were to serve 11 comma 400 guests in June?, what would be? the: a. Estimated total cost using the cost equation from Requirement? 1? b. Estimated total cost using the average per guest cost from Requirement? 2b? c. Why is there a difference in the two cost? estimates?

4. What is the? restaurant's cost equation for estimating costs if the number of guests to be served is more than 14 comma 400 guests per? month? 5. If the restaurant were to serve 15 comma 100 guests in July?, what would be the estimated total? cost? (Use the cost equation from Requirement? 4.)

Requirement 1. What is the? restaurant's cost equation for estimating costs if the number of guests to be served is up to

14 comma 40014,400

guests per? month?

y = $

x + $

Requirement 2a. If the restaurant were to serve

13 comma 20013,200

guests in

MayMay?,

what would be the estimated total cost? (Use the cost equation from Requirement? 1.)

If the restaurant were to serve 13,200 guests in May, the estimated total cost would be $

.

Requirement 2b. If the restaurant were to serve

13 comma 20013,200

guests in

MayMay?,

what would be the average cost per? guest?

If the restaurant were to serve 13,200 guests in May, the average cost per guest would be $

.

Requirement 3a. If the restaurant were to serve

11 comma 40011,400

guests in

JuneJune?,

what would be the estimated total cost using the cost equation from Requirement? 1?

If the restaurant were to serve 11,400 guests in June, the estimated total cost using the cost equation from Requirement 1
would be $		.

Requirement 3b. If the restaurant were to serve

11 comma 40011,400

guests in

JuneJune?,

what would be the estimated total cost using the average per guest cost from Requirement? 2b?

If the restaurant were to serve 11,400 guests in June, the estimated total cost using the average cost per guest from
Requirement 2b would be $		.

Requirement 3c. Why is there a difference in the two cost? estimates?

There is a difference in the two cost estimates because the average cost per guest

?

changes

remains constant

as volume? changes, due to the

?

fixed component

variable component

of the? buffet's costs. The fixed cost per unit

?

decreases

increases

remains constant

as volume? decreases, while the variable cost per unit

?

decreases.

increases.

remains constant.

Requirement 4. What is the? restaurant's cost equation for estimating costs if the number of guests to be served is more than

14 comma 40014,400

guests per? month?

y = $

x + $

Requirement 5. If the restaurant were to serve

15 comma 10015,100

guests in

JulyJuly?,

what would be the estimated total?cost? (Use the cost equation from Requirement? 4.)

If the restaurant were to serve 15,100 guests in July, the estimated total cost using the cost equation from Requirement 4
would be $		.

Answer 1