It's all about identifying what exactly is being said. The dilemma here is that management expects revenue to
increase despite changes in the menu, prices, operating hours, or an increase in capacity. So there must be some other factor that would explain this.
Hollywood restaurant is replacing some of its standard tables with tall tables and stools. The restaurant already fills every available seat during its operating hours, and the change in seating arrangements
will not result in an increase in the restaurant's seating capacity. Nonetheless, the restaurant's management
expects revenue to increase as a result of the seating change without any concurrent change in menu, prices, or operating hoursWhich of the following, if true, provides the best reason for the expectation?
(A) One of the taller tables takes up less floor space than one of the standard tables. X
This is trying to get at the fact that less floor space means the restaurant can accommodate more tables and hence drive revenues up that way. However, we already know that the seating capacity WILL NOT increase. OUT.
(B) Diners seated on stools typically do not linger over dinner as long as diners seated at standard tables.
Correct. The missing link. Revenue is certainly influenced by time. Increased patron turnover means more dishes sold.
(C) Since the restaurant will replace only some of its standard tables, it can continue to accommodate customers who do not care for the taller tables. X
This does not resolve the paradox. In fact, this says nothing new at all. We already know there will be a mix of standard + tall tables.
(D) Few diners are likely to avoid the restaurant because of the new seating arrangement. X
OK, so at the very least this means we could maintain revenue. But why would it increase despite all of those other factors staying constant?
(E) The standard tables being replaced by tall tables would otherwise have to be replaced with new standard tables at a greater expense. X
Expenses =/ Revenue
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