Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sarah's Kitchen sells three types of soups: tomato basil, cheddar dill, and loaded potato. The following table shows the sales price and variable cost
Sarah'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. Sarah incurs $248,000 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. argin from Type Tomato basil Sales Price Variable Cost Contribution Margin $4.00 $3.00 $1.00 Cheddar dill 6.00 4.00 2.00 Loaded potato 6.00 4.00 2.00 on margi ion margin ibution m on margin What amount of revenue would need to be generated by each type of soup for the company to earn $31,000 in operating income? (Round answers to O decimal places, e.g. 25,000.) Tomato basil Cheddar dill $ Loaded potato $ on m ion m ibuti on ma from
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started