October 26, 2009Dr. Kathleen Wu, DirectorKathleen Management Consultants Inc. 210 Long Roa

October 26, 2009

Dr. Kathleen Wu, Director

Kathleen Management Consultants Inc.

210 Long Road, Melbourne, 200020

Dear Dr. Wu,

This letter confirms our phone conversation of October 25.

For a fee of ￥75, 000, Kathleen Management Consultants will investigate the operations of the 15 Blue & White restaurants in Australia and recommend ways for Blue & White's to increase efficiency and achieve higher profits. The subjects for in - depth study should include; a) Opening for breakfast; b) Restaurant operations; and c) Staff training programs.

I understand that you will complete the first report on the feasibility of our opening for breakfast no later than February 20 and that the other reports will follow at 60 - day intervals. I agree to pay Kathleen Management Consultants ￥25, 000 upon receipt of each report.

Please call me if you have any difficulty gaining access to any of the necessary records at any of the restaurants. All the managers are expecting you, and we are very much looking forward to working with you on this project.

Sincerely,

William S . Macbeth, President

February 12, 2010

Mr. William S. Macbeth, President

Blue &White Restaurants

120 Short Road, Melbourne, 200400

Dear Mr. Macbeth,

Here is the report you requested on October 26th studying the feasibility of opening for breakfast. Other members of Kathleen Management Consultant are in the process of researching and preparing the reports about your operations and training programs.

This report shows that with only a small investment in new equipment and a slight increase in personnel and associated expenses, Blue & White could increase its profits by about 20 percent simply by opening for breakfast. Other fast- food chains have increased their profits that way, and Blue &White's customers indicate that they would prefer breakfast at Blue& White to those restaurants currently offering breakfast.

At present, restaurants associated with the large motel chains capture most of the breakfast market. The well -known fast - food chains also capture a significant portion of that market. Our surveys show that many commuters who now eat at home, in one of the motel restaurants, or at one of the other fast-food establishments would prefer the quick service and comfortable atmosphere offered at Blue & White. The most common response from persons already familiar with Blue & White was "Definitely, Blue & White is better."

I have enjoyed preparing this report for you, and I have learned some interesting things about the restaurant business and about Blue & White while working on it. Please call me directly at 5454-5455 when I can be of further service.

Sincerely,

Kathleen Wu

What is Dr. Kathleen Wu's attitude about Blue & White Restaurants' opening for breakfast？

A．Optimistic

B．Pessimistic

C．Critical

D．Negative