QUESTION 4 The cafe manager thinks that break-even calculations could help with their pricing decision, What would be the break-even price for a volume of 4,000 cups of coffee, if fixed costs are $12,000 and variable costs are $0.60. $ 0.00 If the manager knows that, with current staffing, the maximum number of cups the cafe could produce was 5,000, what would be the break-even price at that level? $ 0.00 If the cafe decided to price at the break-even price for their maximum capacity, which of the following statements would be true. Statement Truthfulness If the manager increased the price and operated at maximum capacity, cafe would be profitable. v (select option) True 4. If the cost of coffee increased during the week, but the price remained the same, the cafe would still break even. False If the cafe ran a promotion of $1 off for all college students and 10% of their customers were college students, the cafe would still break even. (select option) : If the espresso machine broke during the Tuesday morning rush and the cafe was unable to serve coffee for 3 hours, the cafe would still break even. (select option) :

QUESTION 4 The cafe manager thinks that break-even calculations could help with their pricing decision, What would be the break-even price for a volume of 4,000 cups of coffee, if fixed costs are $12,000 and variable costs are $0.60. $ 0.00 If the manager knows that, with current staffing, the maximum number of cups the cafe could produce was 5,000, what would be the break-even price at that level? $ 0.00 If the cafe decided to price at the break-even price for their maximum capacity, which of the following statements would be true. Statement Truthfulness If the manager increased the price and operated at maximum capacity, cafe would be profitable. v (select option) True 4. If the cost of coffee increased during the week, but the price remained the same, the cafe would still break even. False If the cafe ran a promotion of $1 off for all college students and 10% of their customers were college students, the cafe would still break even. (select option) : If the espresso machine broke during the Tuesday morning rush and the cafe was unable to serve coffee for 3 hours, the cafe would still break even. (select option) :

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 5E

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