Statement: If the manager increased the price and operated at maximum capacity, the cafe would be profitable. Truthfulness: False If the cafe operates at the break-even price for their maximum capacity, it means that their revenues would be just enough to cover their costs, resulting in a breakeven point. There would be no profit in this scenario. Increasing the price while operating at maximum capacity may generate higher revenues, but it does not guarantee profitability as it depends on the costs involved. Statement: If the cost of coffee increased during the week, but the price remained the same, the cafe would still break even. Truthfulness: False If the cost of coffee increased while the price remained the same, it would directly impact the variable costs per cup. This would lead to a decrease in the gross margin per cup, and therefore the cafe would not break even. The increased cost of coffee would reduce the profitability unless the price is adjusted to compensate for the higher costs. Statement: 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. Truthfulness: False A promotion offering a $1 discount for college students would reduce the revenue per cup for those customers. Although 10% of the customers may receive the discount, it would still impact the overall revenue. If the price reduction is not offset by an increase in volume or other factors, the cafe would likely experience a decrease in profitability and may not break even. Statement: 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. Truthfulness: True The temporary interruption in service due to the espresso machine breaking would impact
Statement: If the manager increased the price and operated at maximum capacity, the cafe would be profitable.
Truthfulness: False
If the cafe operates at the break-even price for their maximum capacity, it means that their revenues would be just enough to cover their costs, resulting in a breakeven point. There would be no profit in this scenario. Increasing the price while operating at maximum capacity may generate higher revenues, but it does not guarantee profitability as it depends on the costs involved.
Statement: If the cost of coffee increased during the week, but the price remained the same, the cafe would still break even.
Truthfulness: False
If the cost of coffee increased while the price remained the same, it would directly impact the variable costs per cup. This would lead to a decrease in the gross margin per cup, and therefore the cafe would not break even. The increased cost of coffee would reduce the profitability unless the price is adjusted to compensate for the higher costs.
Statement: 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.
Truthfulness: False
A promotion offering a $1 discount for college students would reduce the revenue per cup for those customers. Although 10% of the customers may receive the discount, it would still impact the overall revenue. If the price reduction is not offset by an increase in volume or other factors, the cafe would likely experience a decrease in profitability and may not break even.
Statement: 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.
Truthfulness: True
The temporary interruption in service due to the espresso machine breaking would impact
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