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Author Question: Refer to Scenario 9.5 below to answer the question(s) that follow. SCENARIO 9.5: Investors put up ... (Read 506 times)

gbarreiro

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Refer to Scenario 9.5 below to answer the question(s) that follow. 


SCENARIO 9.5: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 percent on their investment. The restaurant 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 $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $3 on average per meal. 





Refer to Scenario 9.5. Weekly total revenue is


◦ $1,600.
◦ $2,000.
◦ $2,700.
◦ $3,600.


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Marked as best answer by gbarreiro on Apr 19, 2019

Heffejeff

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wenmo

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Refer to Scenario 9.5 below to answer the question(s) that follow. 


SCENARIO 9.5: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 percent on their investment. The restaurant 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 $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $3 on average per meal. 





Refer to Scenario 9.5. The restaurant's weekly economic profit is


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






Beheh

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Refer to Scenario 9.5 below to answer the question(s) that follow. 


SCENARIO 9.5: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 percent on their investment. The restaurant 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 $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $3 on average per meal. 





Refer to Scenario 9.5. The weekly economic profit is


◦ $1,000.
◦ $0.
◦ ‐$900.
◦ ‐$3,600.




Melani1276

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Refer to Scenario 9.5 below to answer the question(s) that follow. 


SCENARIO 9.5: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 percent on their investment. The restaurant 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 $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $3 on average per meal. 





Refer to Scenario 9.5. In the long run, the restaurant will want to


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




 

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