Refer to Scenario 9

question 181

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 decides to stay open, it will make operating profits of

Definitions:

Income Inequality

The uneven distribution of income among individuals in an economy, reflecting varying levels of wealth, wage, and earning disparities.

United States

A country in North America consisting of 50 states and a federal district, known for its economic and military power.

Temporary Assistance

Short-term financial or material support provided to individuals or families in need, often by the government or charitable organizations.

Needy Families

Refers to households lacking sufficient income or resources to meet basic living expenses, such as food, clothing, and shelter.