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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