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A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A - called Midtown - will have annual
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 3.35 per customer. Option B - called Market - will have annual fixed costs of 30,500 and variable costs of 3.85 per customer. Finally Option C- called Mall - has annual fixed cost of 19,500 and variable costs of 5.20 per customer. If Mr. Cho averages 8.25 in revenue per customer, what volume is required to breakeven with Option B? Your Answer: 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 $38,000 and variable costs of $3.50 per customer. Option B - called Market - will have annual fixed costs of $28,000 and variable costs of $3.95 per customer. Finally Option C - called Mall - has annual fixed cost of $20,500 and variable costs of $4.95 per customer. At what volumes are the costs of Option A and Option B the same?
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