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3 A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual

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3 A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual fixed costs of $42,500 and variable costs of $3.25 per customer. Option B - called Market - will have annual fixed costs of $30,500 and variable costs of $4.45 per customer. Finally Option C - called Mall - has annual fixed cost of $19,500 and variable costs of $4.80 per customer. At what volumes are the costs of Option B and Option C the same? Your Answer: 6 Answer Question 2 (3 points) A local restaurateur , Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual fixed costs of $42,000 and variable costs of $3.35 per customer. Option B - called Market - will have annual fixed costs of $29,000 and variable costs of $4.20 per customer. Finally Option C- called Mall - has annual fixed cost of $22,500 and variable costs of $4.85 per customer. At what volumes are the costs of Option A and Option C the same? Your Answer: A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual fixed costs of 40,500 and variable costs of 3.40 per customer. Option B - called Market - will have annual fixed costs of 29,500 and variable costs of 4.25 per customer. Finally Option C - called Mall - has annual fixed cost of 18,000 and variable costs of 4.90 per customer. If Mr. Cho averages 9.00 in revenue per customer, what volume is required to breakeven with Option B? Your Answer: Answer Question 4 (3 points) A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual fixed costs of 41,500 and variable costs of 3.30 per customer. Option B - called Market - will have annual fixed costs of 29,000 and variable costs of 4.40 per customer. Finally Option C - called Mall - has annual fixed cost of 21,500 and variable costs of 5.25 per customer. If Mr. Cho averages 8.25 in revenue per customer, what volume is required to breakeven with Option A? Question 5 (3 points) A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual fixed costs of $42,000 and variable costs of $3.40 per customer. Option B - called Market - will have annual fixed costs of $32,500 and variable costs of $3.90 per customer. Finally Option C - called Mall - has annual fixed cost of $20,500 and variable costs of $5.20 per customer. At what volumes are the costs of Option A and Option B the same? Your Answer: : Answer Question 6 (3 points) A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual fixed costs of 39,500 and variable costs of 3.25 per customer. Option B - called Market - will have annual fixed costs of 30,000 and variable costs of 3.80 per customer. Finally Option C - called Mall - has annual fixed cost of 18,000 and variable costs of 4.85 per customer. If Mr. Cho averages 8.75 in revenue per customer, what volume is required to breakeven with Option C? Your Answer: Question 7 (7 points) A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual fixed costs of $40,000 and variable costs of $4.00 per customer. Option B - called Market - will have annual fixed costs of $25,000 and variable costs of $5.00 per customer. Finally Option C - called Mall - has annual fixed cost of $15,000 and variable costs of $8.00 per customer. The average revenue per customer is $10.00 1. The intercept for the cost function representing Option A 15,000 2. The intercept for the cost function representing Option B 35000 3. The intercept for the cost function representing Option C O to 3333 > 4. The margin for Option A 8 > 5. The range of volumes in which Option B is best 6667 6. The slope of the cost function for Optionc 100000 7. The range of volumes in which Option C is best 6250 7. 6250 The range of volumes in which Option C is best 41666 8. The profit breakeven volume for Option A. > 6 9. The profit breakeven volume for Option B 3334 to 15.000 11. The breakeven volume between Options A and C 5 12. Total cost of Options C and B at their breakeven point 25,000 40,000 13. Total cost of Options A and B at their breakeven point 14. The profit of the best option at a valme of 12000 customers

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