Question

Expenses for a Pizza restaurant include raw material for pizza at $4.00 per slice, $117.00 as monthly rental and $48.00 monthly as insurance. Lost sale expense is considered to be $5.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month. Today the restaurant prepared 200.00 pizza slices and sells them for $13.00/slice. There was a party at a nearby office so the demand for pizza went up to 213.00 slices. How much profit did the restaurant earn today?

Answer 1

Therefore, the restaurant earned $ 1,778.40 profits today.