VB - Restaurant - Location Selection (Math Quiz)

You are comparing two properties for lease. The first, A, is all-inclusive at $4,000 per month. The second, B, is $2,300 per month with average monthly utilities of $300, common area charges of $250 per month, and quarterly (every three months) real estate tax of $2,400. Which property is cheaper, A or B?

• A

• B

• They are the same

Your restaurant's revenue is $500,000, expenses total $750,000, and your total investment is $2,350,000. What is your ROI rounded to the nearest hundredth place?

• 1.06%

• -1.06%

• 10.64%

• -10.64%

Real estate taxes for commercial property in your town are $11 per $1,000 assessed value. You plan on buying a rundown property for $200,000 and putting in $300,000 in improvements. Which of the following is the best estimate of your yearly real estate taxes?

• $2,000

• $3,000

• $5,500

• $11,000

You have a choice of whether to lease or buy a location. You can lease it for $3,500 per month or buy it for $1 million. A bank will give you a mortgage at 4% per year. How will your monthly mortgage interest compare to the monthly lease cost?

• Mortgage interest would be higher

• Mortgage insurance would be lower

Your building plan for your restaurant includes one men's and one women's restroom. The city inspector lets you know that you must have at least 400 square feet per bathroom. If your building is a total 4,000 square feet, how many square feet are left for the development of other non-bathroom areas?

• 2,400

• 3,200

• 4,300

• 5,000

You are thinking of locating your restaurant one of 2 locations: location A has a trade radius of 5 miles with a population density of 1,000 per square mile; location B has a trade radius of 7 miles with a population density of 500 per square mile. Which trade area has more potential customers?

• Location A

• Location B

• They are the same

You own a restaurant in a lakeside town where 10,000 cars and 10,000 pedestrians pass by per day. If 1.5% of cars with 2 people each, and 3% of pedestrians enter your restaurant, how many people enter per day?

• 150

• 300

• 450

• 600

You have decided to renovate your restaurant. You estimate that renovations will result in an extra $125,000 in sales per year and save $25,000 in utilities. If the renovation costs $2 million, how many years will it take for the renovation to be worth it?

• 10 years

• 12 years

• 14 years

• 17 years

You are comparing two properties for lease. The first, A, is all-inclusive at $2,250 per month. The second, B, is $1,800 per month with average utilities of $150, common areas charges of $120 per month, and quarterly real estate taxes of $1,200. What is the dollar difference between A & B?

• $220

• $270

• $300

• $420

The five restaurants in your town have monthly rent costs of: $6,350, $5,745, $11,870, $15,255, & $26,432. What is the mean monthly rental cost?

• $11,723

• $13,130

• $20,332

• $27,556