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Marco and his friends invest up to $520,000 to construct a building and purchase all new pizzeria equipment. The expected minimum return on the investment
Marco and his friends invest up to $520,000 to construct a building and purchase all new pizzeria equipment. The expected minimum return on the investment is 10 percent. The pizzeria is open 52 weeks per year and sells 1000 pizzas per week. The fixed costs are spread over the 52 weeks (i.e., prorated weekly). The fixed costs include the 10% return on the investment and $1,500 in other fixed costs. Variable costs include $1,800 in weekly wages, and $700 per week in materials, electricity, etc. The pizzeria charges $10 on average per pizza. If the pizzeria were to shut down, losses per week would 20 Points The fixed cost. The variable cost. O Total revenue. O Zero
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