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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 | | $891,000 |
| Fixed cost | $526,000 | |
| Total variable cost | 224,610 | |
| Total cost | | 750,610 |
| Net income | | $140,390 |
(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?(a) The contribution margin is
$nothing.
(Type an integer or a decimal.)The contribution rate is
nothing%.
(Round to six decimal places as needed.)(b) To break even, the business needs sales to be
$nothing.
(Round up to the nearest cent as needed.)
(c) If the business was to spend
$24,000
to upgrade their processes, it would need sales to be
$nothing
to break even.
(Round up to the nearest cent as needed.)
(d) If
9%
more meals were sold, the resulting net income would be
$nothing.
(Type an integer or a decimal.)
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