The Manager of Your School's Cafeteria Is Trying to Determine

question 56

Multiple Choice

The manager of your school's cafeteria is trying to determine the best staff size to use for the Fall semester. She has tried various staff sizes in the past, with the results shown below. Based on productivity, which crew size should she employ? $$\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Crew Size } & 2 & 4 & 3 & 3 & 4 & 2 \\\hline \text { Sales Per Week } ( \$ ) & 1,716 & 2,298 & 2,034 & 2,004 & 2,278 & 1,702 \\\hline\end{array}$$

• A) Either a 3- or 4-person crew
• B) 4-person crew
• C) 3-person crew
• D) 2-person crew

---

Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Break-Even Quantity

The number of units that must be sold to cover all fixed and variable costs, resulting in neither profit nor loss.

Break-Even Quantity

The number of units that must be sold for total revenues to equal total costs, resulting in no profit or loss.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activities.