Question
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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