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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
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. Sales Price Variable Cost Contribution Margin Tomato basil $2.00 $1.00 $1.00 Cheddar dill 4.00 2.00 2.00 Loaded potato 4.00 2.00 2.00
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