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Question 7 Arestaurant wants to introduce gourmet coffee for its diners. The coffee machine will not require any additional fixed operating cost but will increase
Question 7 Arestaurant wants to introduce gourmet coffee for its diners. The coffee machine will not require any additional fixed operating cost but will increase revenue and offer greater contribution margin. If the restaurant has fixed monthly cost of $15,000 and coffee sales will generate additional margin of $5,000 per month, the restaurant should increase dinner menu prices because even if it loses some dinner revenue, it will be more than made up by coffee sales. should increase its labor wages to motivate better service to its diners. should expand its dinner hours to attract more customers. may be able to increase its dinner revenue by cutting dinner menu prices
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