Mary'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. Mary incurs $160,000 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. Type Tomato basil Cheddar dill Loaded potato (b) Show Transcribed Text Tomato basil Sales Price Cheddar dill $2.00 4.00 Loaded potato 4.00 $ $ Variable Cost $ $1.00 What amount of revenue would need to be generated by each type of soup for the company to earn $20,000 in operating income? (Round answers to O decimal places, e.g. 25,000.) 2.00 2.00 Contribution Margin $1.00 2.00 2.00

Mary'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. Mary incurs $160,000 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. Type Tomato basil Cheddar dill Loaded potato (b) Show Transcribed Text Tomato basil Sales Price Cheddar dill $2.00 4.00 Loaded potato 4.00 $ $ Variable Cost $ $1.00 What amount of revenue would need to be generated by each type of soup for the company to earn $20,000 in operating income? (Round answers to O decimal places, e.g. 25,000.) 2.00 2.00 Contribution Margin $1.00 2.00 2.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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