Question
Ariel LeBec, of Ariels Sandwich Shoppe, sells Po Boy sandwiches and soda from a sidewalk cart in a popular park near her home in New
Ariel LeBec, of Ariels Sandwich Shoppe, sells Po Boy sandwiches and soda from a sidewalk cart in a popular park near her home in New Orleans. She sets up her rented cart in the summers to raise money for college. Last month she sold $6,000 worth of product (sandwiches and sodas) to 300 customers. She spent $1,200 on the sandwich ingredients, wrapping materials, and sodas. Her monthly costs are the following: Utilities = $100, Salary =$2,000, Advertising = $150, Insurance = $50, Interest = $0, Rent = $500, and Depreciation = $0. What is Ariels COGS? Explain.
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