Let us assume that you own a restaurant and that customer or

Let us assume that you own a restaurant and that customer orders are iid random variables. Let us say that the average customer spends $8 with a standard deviation of $2. You need to make $1000 to break even in this business. What is the minimum number of customers do you need to break even

Solution

The minimum number of customers needed t0o make a break even in the business is:

$1000/$8

=125