What closing time should Beverage Center #4 choose to maximize profits? Calculate the increase in profits (relative to the current closing time of 10pm) that would result from extending store hours to 4am. If you recommend a different closing time, calculate the increase in profits (again relative to the current closing time) that would result from your recommendation.

Q. 5. a. Calculate the breakeven number of additional customers for each added hour of operation up to 4am.

b. Calculate the breakeven number of additional customers for an entire year, assuming (i) a closing time of 4am and then (ii) your recommended closing time, if it differs from 4am.

c. Find the safety margin on new customers for the year. [Hint: For the per-year analysis, remember to account for the cost of the security upgrade. Use straight- line depreciation as a measure of the fixed cost of the security upgrade, and then

add the cost of overtime labor for the additional hours of business for each of the 360 business days in the year.]