Refer to Scenario 9

question 13

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, its losses will equal its ________ costs of ________.

Definitions:

Blood Cells

Blood cells are the cells found in the blood, comprising mainly red blood cells (erythrocytes), white blood cells (leukocytes), and platelets (thrombocytes), each serving various functions within the body.

Vertebra

One of the small bones forming the backbone, providing support and protecting the spinal cord.

Transverse Processes

Projections on vertebrae where muscles and ligaments attach, part of the bone's anatomy.

Spinous Processes

Bony projections off the back of each vertebra that can be felt through the skin and serve for muscle and ligament attachment.