Refer to Scenario 9

question 349

Multiple Choice

Refer to Scenario 9.3 below to answer the question(s) that follow.
SCENARIO 9.3: 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 per cent 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 $5 on average per meal.
-Refer to Scenario 9.3. Total variable costs per week are

• A) $600.
• B) $1,000.
• C) $1,600.
• D) $2,000.

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Definitions:

Spontaneous Group Discussion

An unplanned gathering of individuals for the purpose of discussing topics or issues freely without predefined structure or roles.

Serendipity

The occurrence of events by chance in a happy or beneficial way.

Extrinsic Motivations

Motivation that is driven by external rewards such as money, fame, grades, and praise.

Large "C" Type

This term appears to be unclear or not widely recognized in a general context as a specific key term, thus an accurate definition cannot be provided.