Expenses for a Pizza restaurant include raw material for pizza at $4.00 per slice, $116.00 as monthly rental and $45.00 monthly as insurance. Lost sale expense is considered to be $4.00 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 $10.00/slice. There was a party at a nearby office so the demand for pizza went up to 212.00 slices. How much profit did the restaurant earn today

Question

Renee Craig

Business

4 July, 06:12

Expenses for a Pizza restaurant include raw material for pizza at $4.00 per slice, $116.00 as monthly rental and $45.00 monthly as insurance. Lost sale expense is considered to be $4.00 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 $10.00/slice. There was a party at a nearby office so the demand for pizza went up to 212.00 slices. How much profit did the restaurant earn today

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Answers (1)

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Desmond · Answer 1

The restaurant earned a profit of $1145.56 which is approximately $1146

Explanation:

the formula is given as:

Q x (sale price - material cost) - (rental + insurance) / day - loss

Q = 200

Sale price = $10

Material cost = $4

rental = $116

insurance = $45

lost sale expense = $4

day = 25

increased demand = 212

= 200 (10 - 4) - (116 + 45) / 25 - (212 - 200) 4

= 200 (6) - 6.44 - 48

= 1200 - 6.44 - 48

= $1145.56

This is approximately $1146