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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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