Caf Tropical is a local restaurant specializing in tropical cuisine. Among its various Hawaiian-themed menu...
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Caf Tropical is a local restaurant specializing in tropical cuisine. Among its various Hawaiianthemed menu item is the popular "SurpriseMeSmoothie." The smoothies are sold to regular customers at a price of $ per smoothie. The caf typically sells smoothies during breakfast. At this quantity, the smoothies cost the caf $ each to make $ of the cost is variable and $ of the cost is fixed. The restaurant is currently operating at capacity during the breakfast hour. The only menu item offered during breakfast is the smoothie.
The caf is considering accepting a special catering order for their "SurpriseMeSmoothie" from the Jazzagals before they depart for their a cappella competition. The Jazzagals will need the smoothies ready for breakfast, one of the cafs busiest times. The Jazzagals need smoothies and would like a discounted price of $ per smoothie because of the quantity.
What will be the effect on operating income if Caf Tropical accepts the specialorder?
Increase of $
Increase of $
Increase of $
Decrease of $
Decrease of $
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