Problem: A proposed food service facility in Countryville will have 100 seats and be open for breakfast, lunch and dinner, Monday through Saturday.
The owner believes its seat turnover(ST) by meal period and average food service check(AFC) will be s follows:
| |
Breakfast |
Lunch |
dinner |
| Day |
ST |
AFC |
ST |
AFC |
ST |
AFC |
| Monday |
1.5 |
$3.20 |
1.7 |
$6.80 |
0.8 |
$9.50 |
| Tuesday |
1.4 |
3.20 |
1.8 |
6.90 |
0.7 |
9.50 |
| Wednesday |
1.5 |
3.20 |
1.8 |
6.90 |
0.7 |
9.50 |
| Thurthday |
1.5 |
3.20 |
1.8 |
6.90 |
0.7 |
9.50 |
| Friday |
1.2 |
3.50 |
1.6 |
6.70 |
1.6 |
11.50 |
| Saturday |
0.7 |
2.80 |
0.5 |
6.20 |
1.5 |
11.50 |
Assume a year has 365 days, and the first day of the year is a Monday.
Question to answer.
Question 1. Calculate the estimated food service sales for the year.
Question 2. Recalculate the estimated food service sales for the year assuming the AFC is $.15 lower per meal and the ST is .1 percentage point lower for each meal period(for example, the ST for Monday breakfast is 1.4 rather than 1.5).
Question 3. What is the difference between the total revenues calculated in numbers 1 and 2 above?