Refer to Scenario 9

question 109

Multiple Choice

Refer to Scenario 9.10 below to answer the question(s) that follow.
SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe 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 $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.
-Refer to Scenario 9.10. In the short run, if the cafe shuts down, it will ________ variable costs and ________ revenue.

• A) have; receive
• B) have; receive no
• C) have no; receive
• D) have no; receive no

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Definitions:

Cognitive Therapy

A form of psychotherapy that emphasizes the role of thought patterns and beliefs in influencing behavior and emotions, aiming to help individuals change negative thought patterns.

Thinking Errors

Cognitive distortions or irrational thought patterns that negatively affect one's perception and interpretation of events.

Cognitive Therapy

A form of psychotherapy that focuses on changing negative patterns of thought in order to alter behavior and emotions.

Client-centered Therapy

A humanistic approach to psychotherapy that emphasizes the importance of an empathetic counselor-client relationship, promoting self-discovery and personal growth.