A Restaurant is open only for 25 days in a month. Expenses for the restaurant include...

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Finance

A Restaurant is open only for 25 days in a month. Expenses forthe restaurant include raw material for each sandwich at $6.00 perslice, $1,004.00 as monthly rental and $470.00 monthly asinsurance. They consider the cost of lost sales as $5.00 per item.They are able to sell any leftover sandwiches for $3. They prepares200.00 sandwiches and sells them at a rate of $12.00/sandwich.Today there was a party at nearby office so the demand forsandwiches rose to 226.00. How much profit did the restaurant earntoday?

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Solution As per the information given in the question we have No of sandwiches prepared per day 200 Sale price per sandwich 1200 Thus total sales per day 200 12 2400 Raw material cost per sandwich 6 Thus total raw material cost per day 200 6 1200 As per See Answer

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