Figure 7.6
-Figure 7.6 shows prices, demands, and cost data for the only restaurant in a small town. If the restaurant charges the single price of $8 per meal, what is its profit from non -senior customers?
A)$1,200
B)$1,500
C)$2,280
D)$2,560

Question

Figure 7.6
-Figure 7.6 shows prices, demands, and cost data for the only restaurant in a small town. If the restaurant charges the single price of $8 per meal, what is its profit from non -senior customers?
A)$1,200 
B)$1,500 
C)$2,280 
D)$2,560

Quizplus · Accepted Answer

The restaurant sells 280 meals to non-senior customers at a price of $8 per meal, for a total revenue of $2,240. The variable cost of these meals is $1.50 per meal, for a total variable cost of $420. The profit from non-senior customers is therefore $2,240 - $420 = $1,820.

Figure 7.6 -Figure 7.6 Shows Prices, Demands, and Cost Data for the for the Only