Question

The Asian GardenAsian Garden​, a local Thai​ restaurant, expects sales to be $780,000 in January. Its average customer restaurant bill is $65. Only 20% of the restaurant bills are paid with​ cash; 50% are paid with credit cards and 30% with debit cards. The transaction fees charged by the credit and debit card issuers are as​ follows:

Credit​ cards: $0.60 per transaction​ + 2 % of the amount charged

Debit​ cards: $0.55 per transaction​ + 1% of the amount charged 1. How much of the total sales revenue is expected to be paid in​ cash? 2. How many customer transactions does the company expect in​ January? 3. How much of the total sales revenue is expected to be paid with credit​ cards? 4. How many customer transactions will be paid for by customers using credit​cards? 5. When budgeting for​ January's operating​ expenses, how much should the restaurant expect to incur in credit card transaction​ fees? 6. How much of the total sales revenue is expected to be paid with debit​ cards? 7. How many customer transactions will be paid for by customers using debit​cards? 8. When budgeting for​ January's operating​ expenses, how much should the restaurant expect to incur in debit card transaction​ fees? 9. How much money will be deposited in the​ restaurant's bank account during the month of January related to credit and debit card​ sales? Assume the credit and debit card issuers deposit the funds on the same day the transactions occur at the restaurant​ (there is no processing​ delay). 10. What is the total amount of money that the restaurant expects to deposit in its bank account during the month of January from​ cash, credit​ card, and debit card​ sales? Again assume the credit and debit card issuers deposit the funds on the same day that the transaction occurs.

Answer 1