Is the efficiency statement right or wrong.

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2. Truck or Train? They both move, right? Your uncle and aunt operate a food truck near a busy train station. Their primary customers are commuters who work in another town. They told you that it costs them about $1,000 daily to run the food truck from 7:00 a.m. until 5:00 p.m. (on average $100 per hour). They average $1,500 in revenue per day. They want to make more money, and they have the idea of extending their hours until 9:00 p.m. daily. They want your opinion, so they ask you the following questions: If we extend our hours from 5:00 p.m. to either 7:00 pm or 9:00 p.m., how do we know it’s worth it? How do we know that it is beneficial to close later knowing that every additional hour of operation costs us $100? Do you think it is a good idea to raise our prices to increase our revenues? How do we know if raising prices is beneficial to us? What should we do if our costs exceed our revenues over time? Should we stay in business or shut down? Why?

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Chapter 2, Problem 1.3P

To determine

Is the efficiency statement right or wrong.

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2. Truck or Train? They both move, right? Your uncle and aunt operate a food truck near a busy train station. Their primary customers are commuters who work in another town. They told you that it costs them about $1,000 daily to run the food truck from 7:00 a.m. until 5:00 p.m. (on average $100 per hour). They average $1,500 in revenue per day. They want to make more money, and they have the idea of extending their hours until 9:00 p.m. daily. They want your opinion, so they ask you the following questions: If we extend our hours from 5:00 p.m. to either 7:00 pm or 9:00 p.m., how do we know it’s worth it? How do we know that it is beneficial to close later knowing that every additional hour of operation costs us $100? Do you think it is a good idea to raise our prices to increase our revenues? How do we know if raising prices is beneficial to us? What should we do if our costs exceed our revenues over time? Should we stay in business or shut down? Why?

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