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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

  1. 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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