Ops & Supply Managment

Question 1 (3 points) 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 39,000 and variable costs of 3.25 per customer. Option B - called Market - will have annual fixed costs of 30,500 and variable costs of 4.40 per customer. Finally Option - called Mall - has annual fixed cost of 22,500 and variable costs of 4.90 per customer. If Mr. Cho averages 9.25 in revenue per customer, what volume is required to breakeven with Option C? Your Answer: Answer Question 2 (3 points) 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 41,000 and variable costs of 3.40 per customer. Option B - called Market - will have annual fixed costs of 28,500 and variable costs of 4.40 per customer. Finally Option - called Mall - has annual fixed cost of 22,000 and variable costs of 5.25 per customer. If Mr. Cho averages 9.25 in revenue per customer, what volume is required to breakeven with Option A? Your