The Teri Aki Diner is a new buffet-style restaurant offering stir-fry and Thai dishes. The buffet has a fixed price of $8.50 per person. The estimated food costs are $2.00 per person, regardless of volume. Fixed costs are related to the number of buffet lines that are maintained, with the estimated costs as follows:
$$\begin{array} { l r r }
& \text { Monthly volume } & { \text { Fixed Costs } } \
\hline \text {1 line } & 0 - 4,000 & \$ 30,000 \
2 \text { lines } & 4,001 - 6,000 & \$ 37,000 \
3 \text { lines } & 6,001 - 7,500 & \$ 40,000
\end{array}$$
Required:
Determine the break-even point(s).

Question

The Teri Aki Diner is a new buffet-style restaurant offering stir-fry and Thai dishes. The buffet has a fixed price of $8.50 per person. The estimated food costs are $2.00 per person, regardless of volume. Fixed costs are related to the number of buffet lines that are maintained, with the estimated costs as follows:
 $$\begin{array} { l r r } 
& \text { Monthly volume } &  { \text { Fixed Costs } } \
\hline \text {1 line } & 0 - 4,000 & \$ 30,000 \
2 \text { lines } & 4,001 - 6,000 & \$ 37,000 \
3 \text { lines } & 6,001 - 7,500 & \$ 40,000
\end{array}$$ 
Required:
Determine the break-even point(s).

Quizplus · Accepted Answer

The Answer of The Teri Aki Diner is a new buffet-style restaurant offering stir-fry and Thai dishes. The buffet has a fixed price of $8.50 per person. The estimated food costs are $2.00 per person, regardless of volume. Fixed costs are related to the number of buffet lines that are maintained, with the estimated costs as follows:
 $$\begin{array} { l r r } 
& \text { Monthly volume } &  { \text { Fixed Costs } } \
\hline \text {1 line } & 0 - 4,000 & \$ 30,000 \
2 \text { lines } & 4,001 - 6,000 & \$ 37,000 \
3 \text { lines } & 6,001 - 7,500 & \$ 40,000
\end{array}$$ 
Required:
Determine the break-even point(s).

The Teri Aki Diner Is a New Buffet-Style Restaurant Offering