QUESTION: 89

Each month, the owner of a small restaurant that sells take-out fried chicken and biscuits pays $2, 500 in rent, $500 in utilities, $750 interest on a loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break even each month?

442 buckets
764 buckets
1, 050 buckets
3, 150 buckets
4, 200 buckets

Answer(s): C

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QUESTION: 90

DRM Bikes received an order for a customized bike. Bret, the employee in charge of ordering parts for the custom bikes, ordered two fewer clamping bolts and realized the mistake only after his co-worker Julio complained of a shortage in clamping bolts. Julio suggested that it was best to inform the customer about the situation and place a new order for a set of bolts. Martino, Bret's co-worker, suggested using an old pair of bolts because the average customer wouldn't recognize the difference. However, Bret knows that the customer is an experienced biker who will notice the difference, and hence suggested that they use the old pair on a bike for a customer who would not. Considering the evidence presented, what is the ethical step for the sales manager to take?

Act on Bret's advice.
Act on Julio's advice.
Act on Martino's advice.
Use an old set of bolts now and replace them when the customer comes back for the first bike service.
Tell the customer that they faced a mechanical problem and hence delivery would be delayed.

Answer(s): B

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