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Question: a quotlittle sisquot restaurant has been opened as a prototype...
Question details
A "Little Sis" restaurant has been opened as a prototype to test the concept of a smaller facility with a limited menu. Experience during the first two years was as follows:
Year | Annual Volume (Customer Visits) | Total Cost (Fixed plus Variable Cost) |
1 | 40,000 | 600,000 |
2 | 60,000 | 700,000 |
The average sale is $10 per customer. Use the following partially completed graph to determine the break-even quantity graphically. Then refine your solution by solving it algebraically.
A. The break-even quantity is more than 70,000 customer visits.
B. The break-even quantity is more than 30,000 customer visits and fewer than or equal to 50,000 visits.
C. The break-even quantity is fewer than or equal to 30,000 customer visits.
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