A university's cafeteria has an average meal price of $8.50. The variable cost per meal is $4.25, and the fixed costs total $100,000. How many meals must be sold to provide an operating income of $40,000? How many meals would need to be sold if fixed costs declined by 25%? (round to the nearest meal)

A university's cafeteria has an average meal price of $8.50. The variable cost per meal is $4.25, and the fixed costs total $100,000. How many meals must be sold to provide an operating income of $40,000? How many meals would need to be sold if fixed costs declined by 25%? (round to the nearest meal)

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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