A restaurant frequently offers a special prix fixe meal and has been charging $⁢120 per person for the event. At that price, they’ve been averaging 40 customers each time. Their marketing firm has convinced them that they’ll gain a customer for every dollar they lower the cost of the event, and conversely lose a customer for every dollar they raise the cost. Their fixed cost per event is $$⁢1200 and preparing each customer’s meal costs an additional $⁢30. What are the break-even points in terms of customers served? Write the exact answer. Do not round. Separate multiple answers with a comma.

A restaurant frequently offers a special prix fixe meal and has been charging $⁢120 per person for the event. At that price, they’ve been averaging 40 customers each time. Their marketing firm has convinced them that they’ll gain a customer for every dollar they lower the cost of the event, and conversely lose a customer for every dollar they raise the cost. Their fixed cost per event is $$⁢1200 and preparing each customer’s meal costs an additional $⁢30. What are the break-even points in terms of customers served? Write the exact answer. Do not round. Separate multiple answers with a comma.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.3IP

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