Question
A local coffee shop is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer and wine. It
A local coffee shop is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer and wine. It speculates that the only additional costs are hiring more of the same sort of workers to cover the additional hours and costs of the new line of beverages.
Which of the following are examples of hidden costs that are likely to emerge from this decision?Check all that apply.
a) The monthly rent paid for the building
b)The cost of landscaping for the outside lawn
c) The forgone revenues that could be earned by renting the coffee shop out for other events during evening hours
d) Increased insurance premiums due to the presence of alcohol at the coffee shop
The costs involved with the increased usage of utilities, such as electricity and gas, during evening hours
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started