xpenses for a Pizza restaurant include raw material for pizza at $6.00 per slice, $121.00 as monthly rental and $42.00 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 $15.00/slice. There was a party at a nearby office so the demand for pizza went up to 223.00 slices. What is the daily fixed costs expense?

Question

Business

Paula Holloway

22 October, 06:57

xpenses for a Pizza restaurant include raw material for pizza at $6.00 per slice, $121.00 as monthly rental and $42.00 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 $15.00/slice. There was a party at a nearby office so the demand for pizza went up to 223.00 slices. What is the daily fixed costs expense?

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Answers (1)

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Courtney · Answer 1

Daily cost = $6.52

Explanation:

Giving the following information:

Expenses for a Pizza restaurant include raw material for pizza at $6.00 per slice, $121.00 as monthly rental and $42.00 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 $15.00/slice.

Total fixed costs = 121 + 42 = 163

Daily cost = 163/25 = $6.52