You are the manager of a sub shop located near a college campus. The college has recently added a fast-food style cafe' to the student center, which has reduced the number of students eating at your restaurant. Your highest margin items are drinks (a contribution margin of approximately 90%) and vegetarian subs (a contribution margin of approximately 75%).

How can you use CVP analysis to help you compete with the college's cafe'? What would you suggest as possible ways to increase business while maintaining target net income levels?