Excalabur Enterprises converted an old train station into a warehouse space, an office space, restaurants, and specialty
Question:
Excalabur Enterprises converted an old train station into a warehouse space, an office space, restaurants, and specialty shops. If the whole train station was used for warehouse space, the estimated revenue and variable costs per year to Excalabur would be $980,000 and $44,000, respectively. If the train station was used for office space only the estimated revenue and variable costs per year would be $1,060,800 and $70,000, respectively. If all of the space was used for restaurants and specialty shops, the estimated revenue and variable costs would be $1,200,100 and $145,000, respectively. Fixed costs per year would be $600,000 regardless of the alternative chosen.
What should Excalabur Enterprises do? Give supporting computations.
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