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you own a restaurant - your capacity is 100 dinners a day. your regular price is $30 per dinner. your variable costs are $15 per dinner. your fixed costs are $500 per day. on mondays, business is slow, so you expect to sell only 40 dinners (i.e., you have a lot of unused capacity) special order: a charity organization wants to hold its fundraising dinner in your restaurant on monday. they offer to pay $13 per dinner, for a total of 50 dinners. question: should you take this special order? enter y for yes, or n or no.

Respuesta :

Yes I should take this special order because of it I will make profit and this is is good for the restaurant because of it our client base increases.

Give a definition of variable cost?

Depending on changes in a company's manufacturing activities, variable costs might go up or down in production. Raw materials required to make a product, for instance, are an example of a cost that falls under the category of variable costs because they frequently change depending on the volume of a product produced.

Are variable costs direct costs?

Costs that change according on how much or how little a good or service is produced are known as variable costs. The direct costs of a corporation are independent of its output volume. The variable expenses vary depending on how much a company produces. Direct costs include the variable expenses in their definition.

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