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Dorothy'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
Dorothy'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. Dorothy incurs $196,000 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 Sales Price $6.00 8.00 Variable Cost $5.00 6.00 Contribution Margin $1.00 Cheddar dill 2.00 Loaded potato 8.00 6.00 2.00 (a) Your answer has been saved. See score details after the due date. (b) What amount of revenue would need to be generated by each type of soup for the company to earn $24,000 in operating income? (Round answers to 0 decimal places, e.g. 25,000.) Tomato basil $ ta Cheddar dill tA Loaded potato
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