A newly opened food chain estimates to serve 200 customers a day, with an average consumption or basket size of P150. The establishment operates 25 days a month. Fixed cost for operational expenses at P25,000 a month while labor and material cost is P120 per customer served. Determine if the establishment is profitable, how much is the daily profit? How many customers per day must be served to break-even? Note: Put Final Answer in the yellow box

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A newly opened food chain estimates to serve 200 customers a day, with an average
consumption or basket size of P150. The establishment operates 25 days a month.
Fixed cost for operational expenses at P25,000 a month while labor and material
cost is P120 per customer served. Determine if the establishment is profitable, how
much is the daily profit? How many customers per day must be served to
break-even? Note: Put Final Answer in the yellow box
Transcribed Image Text:A newly opened food chain estimates to serve 200 customers a day, with an average consumption or basket size of P150. The establishment operates 25 days a month. Fixed cost for operational expenses at P25,000 a month while labor and material cost is P120 per customer served. Determine if the establishment is profitable, how much is the daily profit? How many customers per day must be served to break-even? Note: Put Final Answer in the yellow box
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