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Author Question: Debbie's Kitchen sells three types of soups: tomato basil, cheddar dill, and loaded potato. The ... (Read 51 times)

campbellfam07

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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?


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Marked as best answer by campbellfam07 on Feb 5, 2023

ryanb

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campbellfam07

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


T4T

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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