cost control case study

Mini Case Study The Decision to Shut Down or Continue to Operate The Seafood Restaurant is a popular restaurant in the Monterey area, with an average of 1,000 covers daily and an average food check of $20 per cover. During the winter months from December until March, the restaurant can hardly pay its bilis because tourism is very low. This downturn affects the whole Monterey area, Mr. Jacob, the owner, has tried to attract the local community to eat at the restaurant during the winter months by writing a new menu, offering discounts, and increasing advertisement. Unfortunately, his efforts have not worked. Mr. Jacob's variable expenses are$4,688 fixed overhead costs total $5,000 per month. Due to the current low level of sales, Mr. Jacob is thinking about closing down the restaurant during the four months that he is losing money. If Mr. Jacob does close down the restaurant, it is estimated that fixed overhead costs can be reduced to $1,000 per month. Start-up costs at the end of the shutdown period would total $2,000. Since the Seafood Restaurant uses just-in-time purchasing, product waste or spollage would only be $1.000 and no inventories on hand are expected What is the average daily sale for the Seafood Restaurant? $20,000 $19,000 $18,000 $22.000 How much a monthly sale is required to make a profit of $14,355 given that the variable rate is 0.27? 0 $26,5137 O $27.754 8 O $25,000 5 S29,100,3