Refer to Scenario 9

question 142

Multiple Choice

Refer to Scenario 9.5 below to answer the question(s) that follow.
SCENARIO 9.5: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 percent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly) . Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $3 on average per meal.
-Refer to Scenario 9.5. The restaurant's weekly economic profit is

• A) positive.
• B) negative.
• C) zero.
• D) break-even.

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Definitions:

Punishable Offense

An act or behavior that is deemed illegal or wrong by law, subjecting the perpetrator to legal penalties or punishments.

Individualistic Culture

A culture that emphasizes personal autonomy and self-reliance, valuing individual rights and achievements over collective goals.

Job Security

The likelihood of a person maintaining their employment without facing unemployment risks.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors of their society.