Starting with the base case below, let's say a restaurant executes a successful marketing campaign and thereby increases its demand by 5%. The higher demand necessitates renting additional restaurant space and adding equipment and personnel, such that all costs go up by the corresponding 5% (both fixed costs and variable costs go up by 5%). Under these assumptions, does the demand increase yield the "multiplier effect" on profit similar to what we found for the 5% operational improvement?

Base Case:

Let's say a restaurant sells a meal for $20; spends 20% ($4) for the food ingredients; spends 40% ($8) for the labor directly involved in cooking and serving one meal; gets 60 customers per each of 30 days per month; and incurs monthly fixed costs of $12,000

What's the right answer ?