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A restaurant owner is showing a positive operating income in 9 of 12 months of operation and is considering whether to close during the three months of the off season. Given the following information for the three months of the offseason, what would be your recommendation? Sales revenue= 22,000, variable costs=16,500, fixed costs=15,000.     Operating income is negative and my recommendation is be closing     Operating income is positive and my recommendation is not closing     My recommendation is closing due to the close-down and start-up costs     My recommendation is not closing despite the loss     None of the above

A restaurant owner is showing a positive operating income in 9 of 12 months of operation and is considering whether to close during the three months of the off season. Given the following information for the three months of the offseason, what would be your recommendation? Sales revenue= 22,000, variable costs=16,500, fixed costs=15,000.     Operating income is negative and my recommendation is be closing     Operating income is positive and my recommendation is not closing     My recommendation is closing due to the close-down and start-up costs     My recommendation is not closing despite the loss     None of the above

Practical Management Science
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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A restaurant owner is showing a positive operating income in 9 of 12 months of operation and is considering whether to close during the three months of the off season. Given the following information for the three months of the offseason, what would be your recommendation? Sales revenue= 22,000, variable costs=16,500, fixed costs=15,000.

   

Operating income is negative and my recommendation is be closing
   

Operating income is positive and my recommendation is not closing
   

My recommendation is closing due to the close-down and start-up costs
   

My recommendation is not closing despite the loss
   

None of the above 
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