A restaurant owner is showing a positive operating income in 9 of 12 months of operation and is considering whether to close during the three months of the off season. Given the following information for the three months of the offseason, what would be your recommendation? Sales revenue= 22,000, variable costs=16,500, fixed costs=15,000.     Operating income is negative and my recommendation is be closing     Operating income is positive and my recommendation is not closing     My recommendation is closing due to the close-down and start-up costs     My recommendation is not closing despite the loss     None of the above

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A restaurant owner is showing a positive operating income in 9 of 12 months of operation and is considering whether to close during the three months of the off season. Given the following information for the three months of the offseason, what would be your recommendation? Sales revenue= 22,000, variable costs=16,500, fixed costs=15,000.

   

Operating income is negative and my recommendation is be closing

   

Operating income is positive and my recommendation is not closing

   

My recommendation is closing due to the close-down and start-up costs

   

My recommendation is not closing despite the loss

   

None of the above 

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