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) :
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Question 4
Transcribed Image Text:Break-Even Analysis
There are several formulas that will be helpful for this assignment:
• Break-Even Units = Fixed Costs / (Price - Unit Variable Cost)
Break-Even Price = Variable Cost + (Fixed Costs / Projected Units)
• Break-Even Revenues
Target Profit Break-Even-Units = (Fixed Costs + Target Profit) / (Price - Unit Variable Cost)
Break-Even Units x Price
Note that you can't sell a fraction of a unit (e.g., a half a cup of coffee). So, if you enter a number of units with a decimal, the
computer will round it to a whole number.
Submit Assignment
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, the cafe would be profitable.
v (select option)
True
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 éspresso 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)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education