A college's food operation has an average meal price of $7.00. Variable costs are $3.75 per meal and fixed costs total $75,000. How many meals must be sold to provide an operating income of $30,000? How many meals would have to be sold if fixed costs declined by 20%? (round to the nearest meal) A. 24,698 B. 27,002 C. 27,692 D. 26,667

A college's food operation has an average meal price of $7.00. Variable costs are $3.75 per meal and fixed costs total $75,000. How many meals must be sold to provide an operating income of $30,000? How many meals would have to be sold if fixed costs declined by 20%? (round to the nearest meal) A. 24,698 B. 27,002 C. 27,692 D. 26,667

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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A college's food operation has an average meal price of $9.20. Variable costs are $4.35 per meal and fixed costs total $95,000. How many meals must be sold to provide an operating income of $33,000? How many meals would have to be sold if fixed costs declined by 23%? (round to the nearest meal) answer this accounting question
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Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions. Sales $944,000 Fixed Cost $597,000 Total Variable Cost $235, 470 Total Cost $832, 470 Net Income $111,530 (a) How much is the contribution margin and the contribution rate?(b) How much does the business need to sell to break even?(c) If the business was to spend $24,000 to upgrade their processes, how much does the business need to sell to break even?(d) If 9% more meals were sold, what would be the resulting net income?
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Question: 5-1 Good Times Restaurant estimates the following costs for next year: fixed costs $120,000, variable cost per meal $15. If they want to earn a profit of $90,000 and charge $35 per meal, calculate the required number of meals.
Required: Number of meals
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8. The fixed cost of the banquet department of a hotel is $350 a day. A customer selected a menu for 100 persons that would have a food cost of $6.50 per person, a variable wage cost of $2.75 per person, and other variable costs of $1.25 per person. a. Calculate the total cost per person if this banquet were booked. b. What should be the total selling price (sales revenue) and the price per person if a 20% operating income on sales revenue is wanted? c. The customer does not want to pay more than $13.75 per person for this function. She is a good customer; she has booked many functions in the banquet room in the past and is expected to do so in the future. The function is three days from now, and there is no likelihood you will be able to book the room for any other function. Explain why you would, or would not, accept the $13.75 per-person price. (Note: Assume that the hotel has only one banquet room.)