Sub Stop, selling sandwiches, is located on a busy corner near many other businesses. The shop’s busiest time is during the mid-day period. Rent for the location is $900 per month and wages amount to $2500 per month. Variable costs consist of supplies and sandwich ingredients that cost $2.20 per sub sandwich. The subs are to be sold at a price of $5.69 each. Answer each of the following independent questions.
(a) How many sandwiches must the shop sell to break even?
(b) If the shop increases variable costs by $0.20 per sandwich, how many sandwiches must it sell to break even?
(c) If the rent increases by 10%, what would the profit be if the shop sold 1600 units?
(d) If the sandwich price were reduced by $0.20, how many sandwiches must the shop sell to make $1000 profit?