Nathan Owns a Coffee Shop

question 38

Multiple Choice

Nathan owns a coffee shop.He wants to increase the weekly number of coffee drinks he sells,and he wants to use a technological advance to do so.________ would represent a technological advance at his coffee shop.

• A) An increase in the number of employees
• B) An improvement in the quality of coffee drinks he serves
• C) An increase in the number of tables and chairs for his customers
• D) Acquiring a new espresso machine that can prepare coffee drinks faster than his current model
• E) A larger building

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Definitions:

Unit Sales

The measure of the quantity of units of a product sold by a company, often used as an indicator of demand and financial health.

Monthly Target Profit

The profit goal set by a business to achieve within a one-month period.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, illustrating how revenue growth translates into growth in operating income.

Net Operating Income

A company's revenue minus its operating expenses, excluding tax and interest, representing the profit from core business operations.