Refer to Scenario 9

question 217

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 weekly economic profit is

• A) $1,000.
• B) $0.
• C) -$900.
• D) -$3,600.

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Definitions:

Experienced Meaningfulness

Pertains to the perception of having purpose, significance, and value in one's work or activities, contributing to personal fulfillment.

Job Depth

Refers to the degree of control, freedom, and discretion employees have over their work.

Planning Duties

Involves outlining tasks, setting goals, and determining the actions required to achieve those goals within an organization.

Evaluating Duties

The process of assessing the responsibilities and functions associated with a specific job role to determine its importance and requirements.