Option #1: If you feel comfortable eating at a restaurant, observe the operations at your favorite fast-food restaurant.

Option #2: If you are not comfortable eating at a restaurant, think through the operations at a restaurant. Visualize the experience when you last ate out and try to answer the below questions. Then, prepare a few questions for an employee at the restaurant. Call the restaurant you visualized and ask questions to confirm your answers. Call during a non-peak time (for example, at 3:00p.m. after the lunch rush and before the dinner rush). In your responses below, describe how your estimate differed from the insight provided by the employee.

Required:

1. Describe all business activities from the time a customer arrives to the time that customer departs.

2. List all costs you can identify with the separate activities described in part 1.

3. Classify each cost from part 2 as fixed or variable and explain your classifications.