Well, what does it say, Darla?” asked Dan. “How much do they want?”
Darla, the manager at the Klondike Restaurant and Dan, the restaurant’s bar manager, were talking about the contract they just received from the band called The Sea Cruisers.
Darla was at the computer reading the contract as she talked with Dan.
The Sea Cruisers were a ‘50’s and ‘60’s era band that Dan and Darla felt might help draw more gusts to their restaurant’s outdoor patio on Friday and Saturday nights.
“They want $1000 per weekend, and we would have to sign a three-month contract,” said Darla. “So, it is about a $12000 commitment on our end.”
“Well,” said Dan, “we should sell more food and drinks on the weekend if we have the band to help us draw more customers.”
“I agree,” said Darla, “but I think the real question is will we attract enough new customers to pay for the band and still make money?”
“Right,” said Dan, “but how will we know unless we go ahead and give it a try?” Th questions are, If the restaurant’s check average is #22.45 per person, how many additional guests would the restaurant need each weekend to pay for The Sea Cruisers? As a manager of the Klondike, what decision would you make? Explain your answer?