Evan operates a Vietnamese restaurant just off Mayor Margrath Road in South Lethbridge. Evan calculated the following variables for his last 12 months during which he was at his profit maximizing level of output: Total Revenue is $300,000; Marginal Revenue is $10; Price per customer served is $13; Average Total Cost is $12; Average Variable Cost is $9.

Evan has asked you to advise him on the following:

a. Is he making a profit or a loss? Explain why you think so?

b. How much profit or loss is he making per customer served? ( please show your workings)

b. Should he keep operating or shut down the business? Explain why?