Question

I recently bought a restaurant in Chicago.  It is pretty small, but well-located.  We are open every day, but Mondays, from 4 PM until 11 PM.  Our menu is basically Italian.  We offer individual pizzas, pastas, salads, and a special of the day. We also have really good desserts. We offer cookies, ice cream and superb cakes.  Last month we had 800 customers.  Our salads are considered a whole meal, so people don’t usually order another entrée with them.  Last month, we sold 400 pizzas, 200 pasta dishes, 130 salads, and 70 specials of the day. Not everyone orders a dessert, but last month we sold 200 cookies, 100 ice creams, and 250 cakes.  Next week we are expecting 250 to 300 customers.  I need to know how many of each of the entrees and how many of each of the desserts I can expect to sell.

I would also like to know how much money I can expect to make.  Perhaps you could also let me know how much the average customer spends. Let me tell you the prices.  The pizzas are $7.95.  The pastas are sold for $8.95.  The salads are $6.95.  The special of the day is $9.95.  As for the desserts, the cookies are $1.00, the ice cream is $1.50, and the cakes are $3.00

Thanks a lot for your help, I am not very good at math, but perhaps you could try to explain your answers in such a way that I could estimate them for myself next time.

Yours sincerely,

Chris Smith

Pizza Plus

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Put the results of your calculations here and the explanation of your calculations o the back of this sheet.

Estimates for 250 customers

Entree	How many	Expected revenue
Pizza
Pasta
Salad
Special
Dessert
Cookie
Ice Cream
Cake
	TOTAL	$

Average customer spends: $________________

Estimates for 300 customers

Entree	How many	Expected revenue
Pizza
Pasta
Salad
Special
Dessert
Cookie
Ice Cream
Cake
	TOTAL	$

Average customer spends: $________________

Explanation of Calculations:

Answer 1

250 Customers
Entree	Quantity Sold For 800 Customers	Price	Quantity (For 250 Customers)	Expected revenue
Pizza	400	7.95	125	993.75
Pasta	200	8.95	63	559.38
Salad	130	6.95	41	282.34
Special	70	9.95	22	217.66
Dessert
Cookie	200	1	63	62.50
Ice Cream	100	1.5	31	46.88
Cake	250	3	78	234.38
			TOTAL	$2,396.88
Average Customer Spend		$9.59
300 Customers
Entree	Quantity Sold For 800 Customers	Price	Quantity (For 300 Customers)	Expected revenue
Pizza	400	7.95	150	1192.5
Pasta	200	8.95	75	671.25
Salad	130	6.95	49	338.81
Special	70	9.95	26	261.19
Dessert
Cookie	200	1	75	75.00
Ice Cream	100	1.5	38	56.25
Cake	250	3	94	281.25
			TOTAL	2876.25
Average Customer Spend		$9.59

Calculation of expected quantity for 250/300 customers: Calculate expected quantity per customer by dividing known quantity by 800 and then multiply the number for each item by 250/300 as may be the case. Revenue can then be calculated by multiplying the expected quantity to the individual prices. Taking of sum of expected revenue of individual quantities gives expected revenue. Dividing the expected revenue by number of customers gives the average spend per customer. The average spend happens to come out to be the same in both cases.