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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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  1. 4 July, 06:18
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    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
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