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

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 $11,000 and variable costs are $0.50.
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? $
If the cafe decided to price at the break-even price for their maximum capacity, which of the following statements would be true.
\table[[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.],[(select option)vv
 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!