George Webb Restaurant Collects on the Average $5 Per Customer

question 9

Multiple Choice

George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner.Its variable cost per customer averages $3,and its annual fixed cost is $40,000.If George Webb wants to make a profit of $20,000 per year at the diner,it will have to serve__________ customers per year.

• A) 10,000 customers
• B) 20,000 customers
• C) 30,000 customers
• D) 40,000 customers
• E) 50,000 customers

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Definitions:

Terminated

Brought to an end or concluded, often referring to the conclusion of employment or the cessation of a contract or agreement.

Legal Action

The process of seeking resolution or enforcement of rights through judicial proceedings.

Damages

Monetary compensation awarded by a court as a remedy for a breach of contract or injury.

Wholesale Price Index

An economic indicator that measures the changes in the price levels of goods sold and traded in bulk by wholesalers.