The Owner of a Small Restaurant That Sells Take-Out Fried

question 48

Multiple Choice

The owner of a small restaurant that sells take-out fried chicken spends monthly amounts of $2,500 in rent, $500 in utilities, $750 in loan interest, $200 in insurance premium, and $250 for advertising on local buses.A bucket of take-out 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?

• A)988
• B)1,000
• C)1,050
• D)3,150

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Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Investee

denotes an entity in which another entity holds an interest, typically through investment.

Subsidiary

A company that is controlled by another company, typically referred to as the parent company, through ownership of more than half of its voting stock.

Partnership

A legal form of business operation between two or more individuals who share management and profits or losses.