A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option...
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A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A- called Midtown - will have annual fixed costs of 42,000 and variable costs of 3.45 per customer. Option B - called Market - will have annual fixed costs of 28,500 and variable costs of 4.45 per customer. Finally Option C- called Mall - has annual fixed cost of 21,000 and variable costs of 4.95 per customer. If Mr. Cho averages 8.75 in revenue per customer, what volume is required to breakeven with Option B? A local restaurateur, Cho Senn, is considering three options for his new Asian fusion restaurant. Option A- called Midtown - will have annual fixed costs of 42,000 and variable costs of 3.45 per customer. Option B - called Market - will have annual fixed costs of 28,500 and variable costs of 4.45 per customer. Finally Option C- called Mall - has annual fixed cost of 21,000 and variable costs of 4.95 per customer. If Mr. Cho averages 8.75 in revenue per customer, what volume is required to breakeven with Option B?
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In order to breakeven with Option B Mr Cho will need to avera... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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