Due to the temporary downturn in the economy, sales revenues have decreased by 50% to 60% for many restaurants and eateries, retails stores and service-oriented businesses (e.g., hair salons ) thus affecting profitability and the ability to continue business operations. In order to survive the slowdown, businesses must make some adjustments or risk going out of business.

Respond to the question below:

1. As a consultant, which the Cost-Volume-Profit techniques and tools would you use to help these businesses make decisions? Assume the business is a restaurant. Briefly explain your choice(s).
2. In term of actions involving cost reduction or increasing revenues, briefly provide some recommendations for these businesses to help them stay profitable or at least minimize losses during this period? (Be specific).. Hint: Think about what some business have been doing to control their costs and generate other streams of revenues.