Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. The cafe's economic profit is
A. break even.
B. zero.
C. positive.
D. negative.
Answer: D
You might also like to view...
The supply of movie tickets at one theater's box office for this Saturday's 4:30 showing of a new movie is
A) perfectly elastic until all seats are filled. B) unit elastic. C) perfectly inelastic. D) elastic.
The mean and the median are closely related concepts. The median is the numerical value separating the higher half of your data from the lower half. You can find the median by arranging all of the observations from lowest value to highest value and picking the middle value? (assuming you have an odd number of? observations). Although the mean and median are closely? related, the difference between the mean and the median is sometimes of interest.
Suppose country A has five families. Their incomes are ?$10 comma 00010,000?, ?$20 comma 00020,000?, ?$30 comma 00030,000?, ?$41 comma 00041,000?, and ?$49 comma 00049,000. Country? A's median income is ?$ 3000030000?, and its mean income is ?$ 3000030000.?(Round your responses to the nearest dollar.?) Suppose country B also has five families. Their incomes are ?$10 comma 00010,000?,?$20 comma 00020,000?, ?$30 comma 00030,000?, ?$41 comma 00041,000?, and ?$149 comma 000149,000. Country? B's median income is ?$ 3000030000?, and its mean income is ?$ nothing. ?(Round your responses to the nearest dollar.?)
Refer to the table above. Spain has comparative advantage in
A) grapes. B) textiles. C) both grapes and textiles. D) neither grapes nor textiles.
Investors must rely on stockbrokers to give detailed, day-to-day reports on stocks and bonds
a. True b. False Indicate whether the statement is true or false