3.1: Are We Making Money?

Restaurants have many more expenses than just the cost of the food.
 Make a list of other items you would have to spend money on if you were running a restaurant.

Identify which expenses on your list depend on the number of meals ordered and which are independent of the number of meals ordered.

Identify which of the expenses that are independent of the number of meals ordered only have to be paid once and which are ongoing.

Estimate the monthly cost for each of the ongoing expenses on your list. Next, calculate the total of these monthly expenses.

Tell whether each restaurant is making a profit or losing money if they have to pay the amount you predicted in ongoing expenses per month. Organize your thinking so it can be followed by others.
 Restaurant A sells 6,000 meals in one month, at an average price of \$17 per meal and an average cost of \$4.60 per meal.
 Restaurant B sells 8,500 meals in one month, at an average price of \$8 per meal and an average cost of \$2.20 per meal.
 Restaurant C sells 4,800 meals in one month, at an average price of \$29 per meal and an average cost of \$6.90 per meal.


Predict how many meals your restaurant would sell in one month.
 How much money would you need to charge for each meal to be able to cover all the ongoing costs of running a restaurant?


What percentage of the cost of the ingredients is the markup on your meal?