Mel's Diner Owns a Single Restaurant, Which Has a Cantina

question 40

Multiple Choice

Mel's Diner owns a single restaurant, which has a cantina primarily used to seat patrons while they wait on their tables. The company is considering eliminating the cantina. Segmented contribution income statements are as follows and fixed costs applicable to both segments are allocated on the basis of square footage. $\begin{array}{lrrr}&\text { Restaurant } & \underline{\text { Cantina }}& \text { Total }\\\text { Sales } & \$ 800,000 & \$ 200,000 & \$ 1,000,000 \\\text { Variable costs } & 475,000 & 160,000 & 635,000 \\\text { Direct fixed costs } & 50,000 & 15,000 & 65,000 \\\text { Allocated fixed costs } & 212,500 & 37,500 & 250,000\\\text { Net income }&\$62,500&(\$12,500) &\$50,000\end{array}$ What effect will occur if Mel's Diner eliminates the cantina if there is no effect on restaurant sales?

• A) Net income will increase by $12,500.
• B) Net income will decrease to $37,500.
• C) Net income will decline by $25,000.
• D) Net income will be $62,500.

Develop skills to identify appropriate digital resources for historical research.

Understand the process and significance of historical research and historiography.

Comprehend the concept and examples of nostalgia within historical context.

Know the procedures for evaluating the validity and accuracy of historical data.

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Definitions:

Mania

A mental state characterized by extremely elevated mood, energy, and unusual thought patterns, often associated with bipolar disorder.

Impulsive Behavior

Actions performed with little or no forethought, reflection, or consideration of the consequences.

Angry Rumination

The process of continuously thinking about and dwelling on events or situations that provoke anger.

Borderline Personality

Borderline Personality Disorder is a mental health condition characterized by unstable moods, behavior, and relationships, with symptoms including emotional instability, feelings of worthlessness, insecurity, and impulsivity.