Question: Consider the following data for Brenda's and Cole's - two restaurants: Brenda's Cole's Annual Fixed Cost $600,000 $100,000 Variable Cost per Customer $5 $10 Revenue

Consider the following data for Brenda's and Cole's - two restaurants:

Brenda's Cole's
Annual Fixed Cost $600,000 $100,000
Variable Cost per Customer $5 $10
Revenue per Customer $15 $15
Annual number of customers 100,000 100,000

(a) What is Brenda's percentage increase in profit for one percent increase in number of customers served?

(b) What is Brenda's percentage increase in profit for one percent decrease in cost?

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