1. Math
  2. Advanced Math
  3. a quotlittle sisquot restaurant has been opened as a prototype...

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.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution