# [Solution]Nature’s Garden, a new restaurant situated on a busy

Nature’s Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef’s salad selling for \$7. Daily fixed costs are…

Nature’s Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef’s salad selling for \$7. Daily fixed costs are \$1,500, and variable costs are \$4 per meal. With a capacity of 800 meals per day, the restaurant serves an average of 750 meals each day.Requireda. Determine the current average cost per meal.b. A busload of 40 Girl Scouts stops on its way home from the San Bernardino National Forest. The leader offers to bring them in if the scouts can all be served a meal for a total of \$180. The owner refuses, saying he would lose \$1.50 per meal if he accepted this offer. How do you think the owner arrived at the \$1.50 figure? Comment on the owner’s reasoning.c. A local businessman on a break overhears the conversation with the leader and offers the owner a one-year contract to feed 300 of the businessman’s employees one meal each day at a special price of \$4.50 per meal. Should the restaurant owner accept this offer? Why or why not?

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