Refer to Scenario 9

question 263

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. Economic profit per week is

• A) ‐$400.
• B) $0.
• C) $600.
• D) $900.

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Definitions:

Stakeholders

People and groups with an interest or “stake” in the performance of the organization.

Acts Of Terrorism

Deliberate acts of violence or threats intended to create fear and advance a political, religious, or ideological cause.

Workplace Violence

Involves any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.

Nonprogrammed Decisions

Decision-making that occurs in response to unusual, unpredictable, and unique problems or opportunities where there are no previously established decision rules.