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Author Question: Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up ... (Read 364 times)

Pineapplelove6

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Refer to Scenario 9.10 below to answer the question(s) that follow. 



SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.





Refer to Scenario 9.10. Weekly total revenue is


◦ $1,600.
◦ $2,000.
◦ $3,600.
◦ $5,400.


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Marked as best answer by Pineapplelove6 on Apr 19, 2019

Sammyo

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mcmcdaniel

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Refer to Scenario 9.10 below to answer the question(s) that follow. 



SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.





Refer to Scenario 9.10. The cafe's economic profit is


◦ positive.
◦ negative.
◦ zero.
◦ break even.






Wadzanai

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Refer to Scenario 9.10 below to answer the question(s) that follow. 



SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.





Refer to Scenario 9.10. The economic profit is


◦ -$3,600.
◦ -$1,200.
◦ $0.
◦ $5,400.




javeds

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Refer to Scenario 9.10 below to answer the question(s) that follow. 



SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.





Refer to Scenario 9.10. In the long run, the cafe will want to


◦ operate and expand.
◦ operate but not expand.
◦ shut down but not go out of business.
◦ go out of business.






ETearle

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Refer to Scenario 9.10 below to answer the question(s) that follow. 



SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.





Refer to Scenario 9.10. In the short run, if the cafe shuts down, it will ________ variable costs and ________ revenue.


◦ have; receive
◦ have; receive no
◦ have no; receive
◦ have no; receive no




LaDunn

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Refer to Scenario 9.10 below to answer the question(s) that follow. 



SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.





Refer to Scenario 9.10. In the short run, if the cafe shuts down, its losses will equal its ________ costs of ________.


◦ variable; $2,600
◦ total; $6,600
◦ fixed; $4,000
◦ fixed; $2,000





LVPMS

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piesebel

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Refer to Scenario 9.10 below to answer the question(s) that follow. 



SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.





Refer to Scenario 9.10. In the short run, if the cafe decides to stay open, it will make weekly operating profits of


◦ -$2,800.
◦ $0.
◦ $2,800.
◦ $5,400.






 

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