Goodies Café is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthday party for 33 people at a house in the neighbourhood. Staff would have to prepare the food in the café kitchen and then transport it offsite to the party. The chef figures that the regular 3 cooks in the kitchen on a Saturday would be able to fit most of the food preparation into their schedule, but they would need at least 1 more cook for the afternoon for 3 hours at $19 per hour. The chef maintains a 30% food cost according to the annual budget and 4 additional servers and a supervisor would be needed to serve food at the party. The party is expected to last 5 hours on Saturday night. Servers earn $18 per hour and the supervisor earns $40,000 per year. The restaurant would also have to rent a truck for $90 to transport the food. If the restaurant does not accept the job, the supervisor will resume normal duties in the café for Saturday service. Based on a quantitative analysis, should the restaurant accept the birthday party job if the customer can pay only $30 per person for food? Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Use the negative sign for a net loss. Revenue Food Cost Servers Cook $Answer Truck $Answer Total Costs $Answer Net Income (Loss) $Answer $Answer $Answer $Answer The job should be: AnswerAccepted Rejected

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter10: Short-term Decision Making
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Goodies Café is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthday party for 33 people at a house in the neighbourhood. Staff would have to prepare the food in the café kitchen and then transport it offsite to the
party. The chef figures that the regular 3 cooks in the kitchen on a Saturday would be able to fit most of the food preparation into their schedule, but they would need at least 1 more cook for the afternoon for 3 hours at $19 per hour. The chef maintains a 30%
food cost according to the annual budget and 4 additional servers and a supervisor would be needed to serve food at the party. The party is expected to last 5 hours on Saturday night. Servers earn $18 per hour and the supervisor earns $40,000 per year. The
restaurant would also have to rent a truck for $90 to transport the food. If the restaurant does not accept the job, the supervisor will resume normal duties in the café for Saturday service.
Based on a quantitative analysis, should the restaurant accept the birthday party job if the customer can pay only $30 per person for food?
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number.
Use the negative sign for a net loss.
$Answer
$Answer
Servers
$Answer
Cook
$Answer
Truck
$Answer
Total Costs
$Answer
Net Income (Loss) $Answer
Revenue
Food Cost
The job should be: AnswerAccepted Rejected
Transcribed Image Text:Goodies Café is open for lunch and dinner seven days a week. The restaurant was asked recently to cater a birthday party for 33 people at a house in the neighbourhood. Staff would have to prepare the food in the café kitchen and then transport it offsite to the party. The chef figures that the regular 3 cooks in the kitchen on a Saturday would be able to fit most of the food preparation into their schedule, but they would need at least 1 more cook for the afternoon for 3 hours at $19 per hour. The chef maintains a 30% food cost according to the annual budget and 4 additional servers and a supervisor would be needed to serve food at the party. The party is expected to last 5 hours on Saturday night. Servers earn $18 per hour and the supervisor earns $40,000 per year. The restaurant would also have to rent a truck for $90 to transport the food. If the restaurant does not accept the job, the supervisor will resume normal duties in the café for Saturday service. Based on a quantitative analysis, should the restaurant accept the birthday party job if the customer can pay only $30 per person for food? Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Use the negative sign for a net loss. $Answer $Answer Servers $Answer Cook $Answer Truck $Answer Total Costs $Answer Net Income (Loss) $Answer Revenue Food Cost The job should be: AnswerAccepted Rejected
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