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4.53 Keep or Drop, Qualitative Factors Sushime has been operating two profitable restaurants in Vancouver and Toronto for several years. A year ago, Sushime expanded its LO1 business to Montreal, and the Montreal restaurant has been suffering losses since its opening. The annual income statement for last year for the three restaurants is as follows 02 Vancouver Toronto Montreal Total Revenue Cost of food Rent (renewal yearly,) Utilities Labour costs (paid hourly) Allocated corpo Total costs $1,200,000 S1,800,000 S 800,000 S3,800,000 S 480,000 S 720,000 S 360,000 $1,560,000 132,000 180,000 140,000 452,000 72,000 90,00085,000 247,000 200,000 380,000 185,000765,000 rate overhead160,000 160,000 160,000 480,000 $1,044,000 $1,530,000 S 930,000 S3,504,000 Operating income (loss) S 156,000 S 270,000 S(130,000) S 296,000 A big portion of the corporate overhead is related to marketing and advertisement. The total overhead costs doubled when French was added to the marketing and advertisement materials. The corporate overhead costs were evenly allocated to three locations, when the Montreal restaurant was newly added a year ago. Mr. Yamamoto, the owner of Sushime, is considering his options. The first option is to close down the Montreal restaurant. The second option is to keep the Montreal restaurant and open another restaurant of similar size to the operation of the Montreal restaurant in a French-language or bilingual location, such as Moncton, New Brunswick