Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 32

Lance's Diner has a hot lunch special each weekday and Sunday afternoon. Food and other variable costs for the lunch are $3.50, and the daily fixed costs are $1,000. Lance has an average of 500 customers per day. What is the lowest price Lance should charge for a special group of 200 that wants to come on Saturday for a family reunion What should be the lowest price Lance charges on a normal weekly basis