A restaurant is considering adding fresh brook trout to itsmenu. Customers would have the choice of catching theirown trout from a simulated mountain stream or simply ask-ing the waiter to net the trout for them. Operating the streamwould require $10,600 in fixed costs per year. Variable costsare estimated to be $6.70 per trout. The firm wants to breakeven if 800 trout dinners are sold per year. What should bethe price of the new item?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6PB: Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and...
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A restaurant is considering adding fresh brook trout to its
menu. Customers would have the choice of catching their
own trout from a simulated mountain stream or simply ask-
ing the waiter to net the trout for them. Operating the stream
would require $10,600 in fixed costs per year. Variable costs
are estimated to be $6.70 per trout. The firm wants to break
even if 800 trout dinners are sold per year. What should be
the price of the new item?

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