Many restaurants fail due to a failure to control costs. To help increase profits restaurant managers need to: Realize if a high proportion of costs are fixed, the breakeven point is lower than for businesses where the large proportion of costs are variable. O Realize that the cost structure of restaurants means that most of the restaurant's expenses are variable costs, which makes cost cutting impossible. O Realize profits are better increased by focusing on cutting labor costs. O Realize their efforts might be better focused on increasing sales rather than cutting costs.

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