Caf Tropical is a local restaurant specializing in tropical cuisine. Among its various Hawaian-themed menu item...

Transcribed Image Text:

Café Tropical is a local restaurant specializing in tropical cuisine. Among its various Hawaian-themed menu item is the popular "Surprise-Me-Smoothie." The smoothies are sold to regular customers at a price of $6.50 per smoothie. The café typically sells 40 smoothies during breakfast. At this quantity, the smoothies cost the café $2.50 each to make-$2.00 of the cost is variable and $0.50 of the cost is fixed. The restaurant is currently operating at 80% capacity during the breakfast hour. The only menu item offered during breakfast is the smoothie The café is considering accepting a special catering order for their "Surprise-Me-Smoothie" from the Jazzagals before they depart for their a cappella competition. The Jazzagals will need the smoothies ready for breakfast, one of the café's busiest times. The Jazzagals need 30 smoothies and would like a discounted price of $4.50 per smoothie because of the quantity What will be the effect on operating income if Café Tropical accepts the special-order? OA. Decrease of $15 OB. Increase of $75 OC. Increase of $25 OD. Decrease of $20 OE. Increase of $15 Café Tropical is a local restaurant specializing in tropical cuisine. Among its various Hawaian-themed menu item is the popular "Surprise-Me-Smoothie." The smoothies are sold to regular customers at a price of $6.50 per smoothie. The café typically sells 40 smoothies during breakfast. At this quantity, the smoothies cost the café $2.50 each to make-$2.00 of the cost is variable and $0.50 of the cost is fixed. The restaurant is currently operating at 80% capacity during the breakfast hour. The only menu item offered during breakfast is the smoothie The café is considering accepting a special catering order for their "Surprise-Me-Smoothie" from the Jazzagals before they depart for their a cappella competition. The Jazzagals will need the smoothies ready for breakfast, one of the café's busiest times. The Jazzagals need 30 smoothies and would like a discounted price of $4.50 per smoothie because of the quantity What will be the effect on operating income if Café Tropical accepts the special-order? OA. Decrease of $15 OB. Increase of $75 OC. Increase of $25 OD. Decrease of $20 OE. Increase of $15

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To determine the effect on operating in... View the full answer