Question: The cafe manager thinks that break - even calculations could help with their pricing decision. a . What would be the break - even price

The cafe manager thinks that break-even calculations could help with their pricing decision.
a. What would be the break-even price for a volume of 4,000 cups of coffee if fixed costs are $11,000 and variable costs are $0.50?
b. If the manager knows that, with current staffing, the maximum number of cups the cafe could produce was 4,900, what would be the break-even price at that level?
a. a. $3.25, b. $2.74
b. a. $3.25, b. $2.25
c. a. $3.75, b. $2.74
d. a. $3.50, b. $2.75
 The cafe manager thinks that break-even calculations could help with their

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!