This topic contains a solution. Click here to go to the answer

Author Question: Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up ... (Read 786 times)


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

ETearle

  • Hero Member
  • *****
  • Posts: 580

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

  • Hero Member
  • *****
  • Posts: 526

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

  • Sr. Member
  • ****
  • Posts: 323

piesebel

  • Hero Member
  • *****
  • Posts: 565

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.




 

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

For a complete list of videos, visit our video library