Question

the burger barn is deciding whether or not to open up one of its restaurants in vindale. businesses such as the burger barn usually want to maximize profits, or make as much money as possible after all costs. suppose the burger barn decides to open the restaurant. sort the results of this decision below into costs and benefits. they will need to hire workers at the new restaurant. they will need to spend money to pay them. they will have to spend money to build the new restaurant. they expect the new restaurant to sell about $1 million worth of food in its first year. they expect the new restaurant to sell about $2 million worth of food every year after its first year. they will spend money each year on food and supplies for the new restaurant. costs benefits

Explanation:

To sort into costs and benefits, we identify what requires spending (costs) and what brings revenue/profit (benefits).

• Costs: Expenses the business incurs. Hiring workers and paying them, building the restaurant, and spending on food/supplies are all outflows of money.
• Benefits: Revenue from selling food, as this is the income the business expects to gain.

Costs:

• They will need to hire workers at the new restaurant. They will need to spend money to pay them.
• They will have to spend money to build the new restaurant.
• They will spend money each year on food and supplies for the new restaurant.

Benefits:

• They expect the new restaurant to sell about $1 million worth of food in its first year.
• They expect the new restaurant to sell about $2 million worth of food every year after its first year.

Answer:

To sort into costs and benefits, we identify what requires spending (costs) and what brings revenue/profit (benefits).

• Costs: Expenses the business incurs. Hiring workers and paying them, building the restaurant, and spending on food/supplies are all outflows of money.
• Benefits: Revenue from selling food, as this is the income the business expects to gain.

Costs:

• They will need to hire workers at the new restaurant. They will need to spend money to pay them.
• They will have to spend money to build the new restaurant.
• They will spend money each year on food and supplies for the new restaurant.

Benefits:

• They expect the new restaurant to sell about $1 million worth of food in its first year.
• They expect the new restaurant to sell about $2 million worth of food every year after its first year.