Accounting in the Headlines Does each Subway SS Footlong cost the franchisee more than $5? SUBWAY Copyright e ge St Photo of Suway. the fastfood restaurant franchise recently announced is bringing back the 55 Fotong promotion franchise owners are protesting the promotion saying that they cannot afford to sell the f o g s andwiches Asume that the costs related to a way footing and Subway rach clude the following Costiem Details Cost per andwich Food ingredients Porong Lab Labor $1400 hour wage rate each worker can make ong Credit card transaction for 10.500 peration El 5.360 per month divided by 4,000 per mon Rent 51.200 .000 de pe Fuch amortization Franchise and s pees 5000 months (15 years divided by 4,000 by 1 per month Advertising Equipment Leasing cost 3600 per month divided by 4.000 Cost per fotong sandwich Assume that all transactions are paid for using a credit card Questions 1. Identity each of the listed costs of one footong sub sandwich as either variable, foodor mixed 2. What costs and factors do you think should be relevant to the footlong sub sandwich pricing decision? Explain 3. What is the contribution margin of each $5 footlong sub sandwich 4. Do you agree that a Subway franchisee would lose money for each footlong sold for $52 Why or why not