The Owner of a Small Restaurant That Sells Takeout Fried

question 177

Multiple Choice

The owner of a small restaurant that sells takeout fried chicken and biscuits each month pays $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many buckets of chicken does the restaurant need to sell to break even each month?

• A) 442 buckets
• B) 764 buckets
• C) 1,050 buckets
• D) 3,150 buckets
• E) 4,200 buckets

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Definitions:

Moving Average Model

A statistical method used to forecast future values based on previous observations' averages.