Refer to Scenario 9

question 191

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. In the short run, if the restaurant shuts down, it ________ variable costs and ________ revenue.

Definitions:

Computational Device

An electronic machine or system, such as a computer, that performs automated calculations or processing of information.

Multi-input

Multi-input describes systems or devices capable of receiving and processing more than one type of input or signal simultaneously.

Output Wires

In neuroscience, this term is not specifically used; in general electronics, it refers to the conducting wires that carry signals out from a device or circuit.

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.