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Add a new product: Macs juice center, located near the university, serves as a gathering place for the universitys students. It sells orange juice at
- Add a new product: Macs juice center, located near the university, serves as a gathering place for the universitys students. It sells orange juice at a contribution of $0.60 per bottle. Mac is considering selling sandwiches. He analyzed the following costs of adding sandwiches:
Per month |
| Per Sandwich |
|
Monthly fixed costs: |
| Variable expenses: |
|
Wages of cook | $ 1,200 | Bread | $0.20 |
Other | $ 300 | Vegetables | $0.60 |
Total | $ 1,500 | Total | $0.80 |
Mac planned a selling price of $1.20 per sandwich to lure many customers. He thinks atleast 60 extra bottles of orange juice can be sold each day because he has sanwiches available. Assume 30 days in a month.
How many sandwiches should he sell on average each day for it to be worthwhile for Mac to expand into sandwiches?
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