ABC Seafood is a beach side restaurant in Maine. The fixed costs per month total $21,000. The average meal price is approximately $19 per customer meal. Variable costs per meal amount to $8.75 per meal. How many meals must be served to earn a net profit of $10,500 per month?
- Calculate the break-even point in number of meals served each month
- Assume that fixed costs increase to $23,000 per month and variable costs rise to $9.25 per month.
- If ABC raises their average meal price to $22, how many meals must be served to make a net profit of $9,000 per month?