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1 Sam's sandwich food truck serves cold ham and cheese sandwiches. Cost of ham, cheese, bread and condiments are $6 per andwich. You interviewed Sam
1 Sam's sandwich food truck serves cold ham and cheese sandwiches. Cost of ham, cheese, bread and condiments are $6 per andwich. You interviewed Sam and learned the following: Depending on the expected volume of customers, Sam either hires 1 , , 3 or 4 sandwich makers for shifts of 2 hours each at $20/ hour. Each sandwich maker can produce about 50 sandwiches in 2 nours. The rental cost of the food truck is $500 per day. There is always a cashier at the truck, and s/he is paid $160/ day (8 hours @ \$20 per hour). Use the above information to answer Questions 16-17 Question 16 4 pts 3.1.1 Using sandwiches as the cost driver, the fixed and variable costs of this operation are best described by (4 marks) FC=$500 UVC =$20/ hour FC=$660 Total Variable Costs =$160 FC=$660UVC=$7.25/sandwich FC=$500 UVC =$6.00/ sandwich FC=$660 UVC =$6.80/ sandwich
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