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Difficulty:
5%
(low)
Question Stats:
87% (01:17) correct
13%
(01:24)
wrong
based on 882
sessions
History
Date
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Result
Not Attempted Yet
The Starbeans cafe has recently hired a new manager. The manager, within a few days of joining, made some drastic changes as a result of which the number of people visiting Starbeans everyday fell by almost 40%. However the revenue during this same period almost doubled.
Which of the following, if true, most helps to explain how the revenues of Starbeans increased despite the falling footfalls?
(A) The manager appointed a new coffee bean supplier who charges much lower rates than did the earlier supplier, resulting in substantial cost savings.
(B) The manager changed the interior of the cafe, making the seats much more comfortable than the earlier seats and adding more colour to the walls.
(C) The manager’s monthly salary is directly linked to the revenue; the more the revenue the more salary he gets.
(D) The manager increased the average price of every item on the menu, in some cases even doubling the original price
(E) The manager fired some of the staff, thereby cutting down Starbean’s salary cost by half.
Which of the following, if true, most helps to explain how the revenues of Starbeans increased despite the falling footfalls?
(A) The manager appointed a new coffee bean supplier who charges much lower rates than did the earlier supplier, resulting in substantial cost savings.
(B) The manager changed the interior of the cafe, making the seats much more comfortable than the earlier seats and adding more colour to the walls.
(C) The manager’s monthly salary is directly linked to the revenue; the more the revenue the more salary he gets.
(D) The manager increased the average price of every item on the menu, in some cases even doubling the original price
(E) The manager fired some of the staff, thereby cutting down Starbean’s salary cost by half.
17 Jan 2017, 10:54
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A and E may contribute in profits, but it can not increase the revenue. Only D can explain why revenue increased. I think d is the answer.
14 Mar 2017, 09:29
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"the number of people visiting Starbeans everyday fell by almost 40%"
a-doesn't explain fewer customers
b-opposite (would theoretically encourage more customers)
c-explains higher revenues but doesn't explain fewer customers
d-CORRECT explains why revenues went up and customers went down...more revenue per customer
e-customers would not necessarily know, be upset, or stop patroning due to employee firings..and this would be an lower expense, not a higher revenue
Thus, D.
a-doesn't explain fewer customers
b-opposite (would theoretically encourage more customers)
c-explains higher revenues but doesn't explain fewer customers
d-CORRECT explains why revenues went up and customers went down...more revenue per customer
e-customers would not necessarily know, be upset, or stop patroning due to employee firings..and this would be an lower expense, not a higher revenue
Thus, D.
