What allocation to replace cafeteria with vending machines

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Problem 1: Chou foods operates a cafeteria for its employees. the operations of the cafeteria requires fixed cost of 470,000 per month and variable cost of 40% sales. cafeteria sales are currently averaging 1200000 per month. gross spending at the vending machines is estimated to be 44% greater than the current sale because the vending machines are available at all hours. grass customer spending as operating income. allocation to replace the cafeteria with vending machines will result in a monthly increase (decrease) in operating income of?

 

Reference no: EM132768909

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