Question: Mateo sells bubble tea for $8 per cup. The variable cost for each cup he sells is $2. He also has fixed costs of $1,500.

Mateo sells bubble tea for $8 per cup. The variable cost for each cup he sells is $2. He also has fixed costs of $1,500. If Mateo sells 1,000 cups of bubble tea, what is his total Contribution Margin? __________ And what is his total Net Operating Income? __________ $8,000 Contribution Margin; $6,000 Net Operating Income $4,500 Contribution Margin; $2,000 Net Operating Income $6,000 Contribution Margin; $4,500 Net Operating Income $2,000 Contribution Margin; $1,500 Net Operating Income

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

If possible, find (a) AB (b) BA (c) A2. 1. 2. 27 2] 2 -1 B = -1 || 6 3 -2 0 B = -2 -4 4 2 4

The Sabah COVID-19 team has contacted you to design a database for managing its 20 quarantine centres' data. The database enables the team to keep track of nurses who work in the centre, and patients...

Two alternatives are being considered: If the minimum attractive rate of return is 7%, which alternative should be selected? A B $5000 First cost $9200 Uniform annual benefit Useful life, in years...

Wollongong Group Ltd, of New South Wales, Australia, acquired its factory building about 10 years ago. For several years the company has rented out a small annex attached to the rear of the building....

Distinguish between a first-order phase transition, a second-order phase transition, and a le-transition at both molecular and macroscopic levels.

The Meredith Company issued $100 par value preferred shares 10 years ago. The shares provided an 8 percent yield at the time of issue. Each preferred share is now selling for $75. What is the current...

4. Allow students to choose work partners as long as they focus on the task.

Recovery Enterprises sells a product for $ 90 per unit. The variable cost is $ 60 per unit, while fixed costs are $ 45,000. Determine (a) The break-even point in sales units (b) The break-even point...

Asset turnover A company reports the following: Sales $632,800 Average total assets 452,000 Determine the asset turnover ratio. If required, round your answer to one decimal place

The purpose of the restrictive debt covenant that requires maintaining a minimum level of net working capital is to O protect the lender by controlling the risk and marketability of the borrower's...

Problem 11. The shares of Microsoft were trading on Nasdaq on January 1 at $41. A Swedish investor purchased 100 shares of Microsoft at that price. The Swedish kroner to dollar exchange rate then was...

In the commercial section of the newspaper you come across an ad for a pizza delivery business for sale. upon inquiry, you discover that the owner , who wants to sell the business and then retire,...

An applied researcher is developing a new measure of organizational commitment for a study. In order to compare it to an existing measure of organizational commitment, the researcher would compute a...

7.5 A large lot of manufactured items contains 10% with exactly one defect, 5% with more than one defect, and the remainder with no defects. Ten items are randomly selected from this lot for sale. If...

A composite wall of a furnace has 3 layers of equal thickness having thermal conductivities in the ratio of 1:2:4. What will be the temperature drop ratio across the three respective layers? A. 12:4...

You are given the following information about your European Options Portfolio - All of which are for the same underlying security and have the same expiration date: Assume that there is only 1 unit...

Explain what is meant by vicarious liability and when it is available?

Using the five-number summary given in Table 4.20 (a) construct an outlier boxplot. (b) describe the general shape of the distribution suggested by the boxplot in part (a). (c) estimate the...

How can an outlier boxplot be used to identify an (a) outlier? (b) extreme outlier?

Compute the estimated standard error of ???? when (a) ???? = 3000, ???? = 50, and ???? = 14.2. (b) ???? = 10000, ???? = 150, and ???? = 251.8. (c) ???? = 15000, ???? = 1500, and ???? = 768.9. (d)...