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A Certain Location of O'Charley's Restaurant Has Annual Fixed Costs

Question 55

Multiple Choice
A certain location of O'Charley's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?
A) 2,000
B) 5,000
C) 10,000
D) 3,333
E) 2,500

A certain location of O'Charley's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must O'Charley's serve per year in order to break even?


A) 2,000
B) 5,000
C) 10,000
D) 3,333
E) 2,500

Correct Answer:

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