Reference no: EM132741613

Problem 1: Given the following information, find break-even point in number of customers.Fixed costs, $113,231.64; contribution margin, $2.28

Option 1: $50,000
Option 2: $20,000
Option 3: $49,663
Option 4: None of the above

Problem 2: A college's food operation has an average meal price of $12.50. Variable costs are $2.50 per meal and fixed costs total $75,000. How many meals must be sold to provide an operating income of $25,000?

Option 1: 5,000
Option 2: 10,000
Option 3: 15,000
Option 4: None of the above