A restaurant is deciding whether it wants to update its image or not. It currently has a cozy appeal with an outdated décor that is still in good condition, menus and carpet that need to be replaced anyway, and loyal customers

Identify for the restaurant management
a. those costs that are relevant to this decision,
b. those costs that are not relevant,
c. and qualitative considerations.

For the decision of whether to update the restaurant's image:
a. Relevant costs include a one-time cost of the renovation for the updated image, a change in future sales which includes an increase in sales due to the updated image, decrease in sales due to loss of that cozy appeal, and loss of sales due to being closed or having a limited serving area during renovation.
b. Costs that are not relevant include the costs of replacing the menus and the carpet since they need to be replaced whether the image is updated or not.
c. Qualitative considerations include whether the restaurant will lose that cozy appeal it currently has, if the restaurant needs to be closed for renovations it may result in a loss of customers, and new customers may not be the type of customer the restaurant wants to attract.