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Week 3 Discussion Collapse Total views: 14 (Your views: 1)Overall Rating:12345Your Rating:12345″Production Costs” Please respond to one of the following:You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant, and explain the changes to each of these costs given the increased demand. What is the accounting cost of operating the business described by the information in the table below? What is the economic cost? Why do the two cost estimates differ? Economic Versus Accounting CostsItem: CostTotal annual labor cost (the business owner does not draw a salary) $160,000.00Total annual cost of materials used in production$250,000.00Annual expenditure on rent, utilities, taxes, insurance, and misc. expenses$90,000.00The business owners’ previous annual salary when he worked for someone else$85,000.00The business owner’s annual interest income before sinking all of his funds into this business$15,000.00

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