Refer to Scenario 9

question 135

Multiple Choice

Refer to Scenario 9.3 below to answer the question(s) that follow.
SCENARIO 9.3: 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 per cent 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 $5 on average per meal.
-Refer to Scenario 9.3. Total cost per week is

• A) $1,000.
• B) $1,600.
• C) $2,000.
• D) $3,600.

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Definitions:

Force-Coercion Strategy

Pursues change through formal authority and/or the use of rewards or punishments.

Political Alliances

Partnerships or associations formed between political entities, such as countries or parties, to advance shared goals or interests.

Formal Authority

indicates the legitimate power granted to an individual or organization by virtue of position or office to make decisions, command resources, or govern.

Force-Coercion Strategy

A change management approach that involves using power to effect change, typically through the application of pressure or the threat of negative consequences.