Question
I would guess that each of you have been to a fast-food restaurant. Think about all of the aspects of the operation procedures used to
I would guess that each of you have been to a fast-food restaurant. Think about all of the aspects of the operation procedures used to take, process, and fill an order and deliver the order to the customer. Based on what you have observed during your visit to one of these restaurants, identify at least three variable and three fixed costs. Can you identify any potential mixed costs? Why is the restaurant willing to sell a large drink for only a few cents more than a medium drink? How is the restaurant able to offer a "value meal" (sandwich, drink, and fries) for considerably less than those items would cost if they were bought separately? Explain your thoughts on this information.
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