If considering for expansion

New cost= rent + renovation + cost of selling Deli x (New number of

seat/ existing number of seats)
Revenue = revenue of selling Deli x (New number of seat/ existing
number of seats)
New cost = 48,000 + 30,000 + 84,566x (number of required seats/12)

Revenue= 217,544 x (number of required seats/ 12)

For the break-even point, Revenue ‘minus’ New cost should be equal to zero

217,544 x (number of required seats/ 12) – (48,000 + 30,000 + 84,566x (number of required seats/12)) = 0

Therefore, the minimum number of seats should be 7.04

Rounding of the nearest highest integer = 8 seats or 4 Tables
Cost per day if expansion is done
250

200

150
Price in Dollar

100

50

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