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 $$13,000$ and variable costs are $$0\mathrm{.}50.$$

If the manager knows that, with current staffina, the maximum number of cups the cafe could produce was $5,000,$ what would be the breakeven price at that level? $$

If the cafe decided to price at the break$-$even price for their maximum capacity, which of the following statements would be true.

If the manager increased the price and operated at maximum capacity, the cafe would be profitable.

If the cost of coffee increased during the week, but the price remained the same, the cafe would still break even.

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.

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.