Question

Nobu is a restaurant that gets a lot of 1st time customers: in a given month, 200 new couples try the restaurant. Of these customers, 25% come back again twice during one year and spend an average of $50 per meal; 30% come back again four times during one year and spend an average of $100 per meal. Calculate the total follow-on revenue attributable to the repeat business from one month's set of new customers.

Question 3 options:

$29,000

$24,000

$5,000

$32,000

The correct answer is not shown

Please give steps and formulas!

Answer 1

1st customer in month = 200

25% of customers = 200*25% = 50

Follow on Revenue from 25% customers = 2 times * 50 customers * $50 per meal = $5,000

30% of customers = 200*30% = 60

Follow on Revenue from 30% customers = 4 times * 60 customers * $100 per meal = $24,000

Follow on Revenue attributable to the repeat business from one month set of customers = Follow on Revenue from 25% customers + Follow on Revenue from 30% customers

= $5,000 + $24,000

= $29,000

Therefore, Follow on Revenue attributable to the repeat business from one month set of customers is $29,000