Assume that Chipotle Mexican Grill is considering a capital proposal that involves Chipotle expanding into lower populated
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Question:
Assume that Chipotle Mexican Grill is considering a capital proposal that involves Chipotle expanding into lower populated areas with the use of food trucks rather than building actual restaurant locations.
- List and describe two relevant costs unique to the food truck proposal. These must be unique to the food truck proposal, so things like additional food and labor would not count.
- For each relevant cost you listed above, please tell me if the relevant cost would be a fixed, a variable, or a mixed expense. Additionally, explain your reasoning.
For the food truck proposal mentioned in the prior problem, please list, and describe two additional unique risks resulting from the food truck project. Food safety would not count since this is a risk to all Chipotle locations. Additionally, please describe how Chipotle might mitigate each risk.
Related Book For
Entrepreneurship Successfully Launching New Ventures
ISBN: 978-0133797190
5th edition
Authors: Bruce R. Barringer, R. Duane Ireland
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