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John Flowers owns Keneally’s Irish Pub. On the upcoming St. Patrick’s Day, John expects a capacity crowd. John normally operates with four servers. Because of seat- ing limitations, John can only add a total of four more servers to his staff for St. Patrick’s Day. Each server costs John $12.00 per hour. His beverage costs are 25 percent. Each added server can generate an additional $600.00 in beverage sales per hour if they work a full 8-hour shift. What are the increased revenue, labor costs, beverage costs, as well as the revenue remain- ing after John pays his product and labor costs if he places an additional one, two, three, or four full-time servers on his St Patrick’s Day employee schedule. What additional factors might John take into account before determining how many additional servers he should add?
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