Final answer:
The decision to open a new restaurant would be made by a manager of a Profit center. This is because a profit center is responsible for both revenue generation and cost control, relevant to such strategic business decisions. The correct option is B.
Step-by-step explanation:
The decision to open a new restaurant would be made by a manager of a Profit center. A profit center is a part of an organization with direct responsibility for generating revenue as well as controlling its costs, thereby accounting for the profit.
In contrast, a cost center only controls and is responsible for costs, an investment center is responsible for investment decisions as well as profits, and a budget center is primarily focused on adhering to a budget. A Profit center manager has the autonomy to make strategic decisions such as opening a new restaurant because such decisions are expected to directly impact the center's profitability.
Using the provided reference information, where the center earns revenues of $20,000, and variable costs are $15,000, it suggests that the center is making a gross profit since revenues exceed variable costs. This is an indication that the center should continue in business as it is covering its variable expenses and contributing to fixed costs and potential profits.