1. A restaurant is deciding whether it wants to update its image or not. It currently has a cosy appeal with an outdated dcor that is still in good condition, menus and carpet that need to be replaced anyway, and loyal customers.

Identify for the restaurant management

(a) those costs that are relevant to this decision, [3 marks]

(b) those costs that are not differential, [3 marks]

(c) qualitative considerations. [2 marks]