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Ruths Kitchen sells three types of soups: tomato basil, cheddardill, and loaded potato. The following table shows the sales priceand variable cost for each type.

Ruth’s Kitchen sells three types of soups: tomato basil, cheddardill, and loaded potato. The following table shows the sales priceand variable cost for each type. Ruth incurs$232,000 a year in fixed costs. Assume that the restaurant hasa sales mix of two tomato basil servings, two cheddar dill servingsand one loaded potato serving.

Type

Sales Price

Variable Cost

Contribution Margin

Tomato basil

$5.00

$4.00

$1.00

Cheddar dill

7.00

5.00

2.00

Loaded potato

7.00

5.00

2.00

(a)

How many servings of each type will be sold at the breakevenpoint? (Round answers to 0 decimal places, e.g.25,000.)

Tomato basil

enter a number of servings

Cheddar dill

enter a number of servings

Loaded potato

enter a number of servings

What amount of revenue ($) would need to be generated by eachtype of soup for the company to earn $25,000 in operatingincome?

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