Refer to Scenario 9

question 319

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. The restaurant is making ________ economic profits per week.

Gain insights into the financial implications of interest payments on bonds.

Develop proficiency in interpreting and solving bond interest and carrying amount problems.

Understand the concept and purpose of the Accumulated Depreciation account.

Identify the types of assets that are subject to depreciation and the exceptions.

Definitions:

Paleontology

The scientific study of the history of life on Earth through the examination of plant and animal fossils.

Common Ancestor

The latest ancestor from whom all members of a group have descended directly.

Georges Buffon

An 18th-century French naturalist, mathematician, and author known for his significant contributions to the natural sciences, especially in the field of natural history.

Laws of Physics

The fundamental principles that govern the natural world, including laws related to motion, energy, force, and matter.