To calculate the profit the restaurant could earn today given the increased demand for 218 pizza slices, we need to consider the revenues, expenses, and losses.
Given Data:
- Selling Price per Slice: $14.00
- Cost of Raw Material per Slice: $6.00
- Monthly Fixed Rental: $120.00
- Monthly Insurance: $27.00
- Cost of Lost Sales (for unsatisfied customers): $6.00 per slice
- Selling Price of Leftover Pizza: $2.00
- Total Pizza Slices Prepared: 200 slices
- Demand for Pizza Today: 218 slices
- Days Open in a Month: 25
1. Calculate Revenue:
- Slice Sold: The restaurant can sell up to the number of slices it prepared, which is 200 slices (cannot sell 218 as only 200 are prepared).
- Total Revenue: \[ \text{Total Revenue} = \text{Number of Slices Sold} \times \text{Selling Price per Slice} = 200 \times 14 = 2800.00 \]
2. Calculate Expenses:
- Raw Material Cost for 200 slices: \[ \text{Raw Material Cost} = \text{Number of Slices Prepared} \times \text{Cost of Raw Material per Slice} = 200 \times 6 = 1200.00 \]
- Fixed Costs (Rental + Insurance): \[ \text{Fixed Costs} = 120 + 27 = 147.00 \]
- Total Expenses: \[ \text{Total Expenses} = \text{Raw Material Cost} + \text{Fixed Costs} = 1200.00 + 147.00 = 1347.00 \]
3. Calculate Lost Sales:
Since the demand exceeds supply (218 slices demanded vs. 200 slices supplied), there are 18 unhappy customers:
- Loss from Lost Sales: \[ \text{Loss from Lost Sales} = \text{Number of Unhappy Customers} \times \text{Cost of Lost Sales} = 18 \times 6 = 108.00 \]
4. Total Profit Calculation:
- Total Profit: \[ \text{Total Profit} = \text{Total Revenue} - \text{Total Expenses} - \text{Loss from Lost Sales} \] \[ \text{Total Profit} = 2800.00 - 1347.00 - 108.00 = 1345.00 \]
Conclusion:
The restaurant could earn a profit of $1345.00 today.