A local restaurateur, Cho Senn, is considering three options for his new Asian fusicrestaurant. Option A - called Midtown - will have annual fixed costs of 42,500 anvariable costs of 3.45 per customer. Option B - called Market - will have annualfixed costs of 30,000 and variable costs of 4.40 per customer. Finally Option C -called Mall has annual fixed cost of 19,500 and variable costs of 5.25 percustomer. If Mr. Cho averages 8.25 in revenue per customer, what volume isrequired to breakeven with Option B?Your Answer:-Answer4

Given data, For Option A, the annual fixed cost=42500 the variable cost per customer=3.45 For…

Answered: A local restaurateur, Cho Senn, is…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to use these funds to start a student accommodation business. In order to start this business, Lorraine would need approximately R1 million, funds are needed for building the students accommodation apartments and to register with various regulatory bodies. She has to source additional funding in order to realise this dream. In the business plan, Lorraine has outlined the following:• Accommodation will be offered ONLY to students in Cape Town, Johannesburg, Mpumalanga and Polokwane.• ONLY females will be approved to reside in these houses, between the age of 18 - 35.• Marketing of the business will be done on community Radio stations only at the fourmentioned cities.• It is going to be a family business, Friends and relatives are in support of the idea but are not able to support the business financially. 4.1 Discuss ANY TWO labour legislations that applies to and will impact Lorraine’s business.…
Problem 8-4 (Algo) A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $285,000 per year, and variable costs would be $570 per boat. Subcontracting would involve a cost per boat of $2,570, and expansion would require an annual fixed cost of $59,000 and a variable cost of $1,040 per boat. a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.) A B с Answer is not complete. or to to more b. Which alternative would yield the lowest total cost for an expected annual volume of 70 boats? C. What other factors might be…

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