bette's breakfast, a perfectly competitive eatery, sells its "breakfast special" (the only item on the menu) for $5.00. the costs of waiters, cooks, power, food, etc. average out to $3.95 per meal; the costs of the lease, insurance, and other such expenses average out to $1.25 per meal. bette should a. lower her output. b. close her doors immediately. c. raise her prices above the perfectly competitive level. d. continue producing in the short run, but plan to go out of business in the long run.

"jake’s roof repair has provided the following data concerning its costs: fixed cost per month cost per repair-hour wages and salaries $ 20,900 $ 15.00 parts and supplies $ 7.70 equipment depreciation $ 2,800 $ 0.35 truck operating expenses $ 5,720 $ 1.60 rent $ 4,690 administrative expenses $ 3,850 $ 0.50 for example, wages and salaries should be $20,900 plus $15.00 per repair-hour. the company expected to work 2,600 repair-hours in may, but actually worked 2,500 repair-hours. the company expects its sales to be $47.00 per repair-hour. required: compute the company’s activity variances for may."