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Home Q & A Board Other Fields Homework Help Business Accounting
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westleafs westleafs
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A year ago
Debbie's Kitchen sells three types of soups: tomato basil, cheddar dill, and loaded potato. The following table shows the sales price and variable cost for each type. Debbie incurs $200,000 a year in fixed costs. Assume that the restaurant has a sales mix of two tomato basil servings, two cheddar dill servings and one loaded potato serving.

TypeSales PriceVariable CostContribution Margin
Tomato basil$3.00$1.50$1.50
Cheddar dill  4.50  2.00  2.50
Loaded potato  4.50  2.50  2.00

Required:

a.How many servings of each type will be sold at the break-even point?
b.What amount of revenue would need to be generated by each type of soup for
the company to earn $25,000 in operating income?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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lyssa1605lyssa1605
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A year ago
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