A jacket potato vendor charges $5.93 per potato sold. The variable cost of each potato served is $1.26. The stall has a fixed cost of $600 per week. What percentage increase in volume sold does the answer in Q3 represent?

This is question 3

A jacket potato vendor charges $5.93 per potato sold. The variable cost of each potato served is $1.26. The stall has a fixed cost of $600 per week.

After the shortage, potato costs return to previous levels and the owner decides to lower prices to $3.00 per potato. How many potatoes have to be sold to realize the target profit objective of $750?

Answer and Explanation: (750 + $600) / (3 - $1.26) = 776 [+/- 23] Divide the sum of profit and fixed cost by the new contribution margin per potato.