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:
$$\begin{array} { | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Annual volume } \
\text { (customer visits) }
\end{array} & \begin{array} { c }
\text { Total Cost } ( \$ ) \
\text { (fixed plus variable cost) }
\end{array} \
\hline \text { Year 1 } & 40,000 & 600,000 \
\text { Year 2 } & 60,000 & 700,000 \
\hline
\end{array}$$
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.(Show your work for credit.)

A) The break-even quantity is fewer than or equal to 30,000 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 more than 50,000 visits and fewer than or equal to 70,000 visits.
D) The break-even quantity is more than 70,000 customer visits.

Question

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:
$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Annual volume } \
\text { (customer visits) }
\end{array} & \begin{array} { c } 
\text { Total Cost } ( \$ ) \
\text { (fixed plus variable cost) }
\end{array} \
\hline \text { Year 1 } & 40,000 & 600,000 \
\text { Year 2 } & 60,000 & 700,000 \
\hline
\end{array}$$
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.(Show your work for credit.)

A) The break-even quantity is fewer than or equal to 30,000 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 more than 50,000 visits and fewer than or equal to 70,000 visits. 
D) The break-even quantity is more than 70,000 customer visits.

Quizplus · Accepted Answer

The Answer of 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:
$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Annual volume } \
\text { (customer visits) }
\end{array} & \begin{array} { c } 
\text { Total Cost } ( \$ ) \
\text { (fixed plus variable cost) }
\end{array} \
\hline \text { Year 1 } & 40,000 & 600,000 \
\text { Year 2 } & 60,000 & 700,000 \
\hline
\end{array}$$
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.(Show your work for credit.)

A) The break-even quantity is fewer than or equal to 30,000 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 more than 50,000 visits and fewer than or equal to 70,000 visits. 
D) The break-even quantity is more than 70,000 customer visits.

A "Little Sis" Restaurant Has Been Opened as a Prototype