groups/407061/discussion topics/5837911 As S wax the fastfood restaurant trancha nounced in early 2013 planned to bring back the 's Footlong promotion Hundreds of Subway franchise owners protested the promotion saying that they carretard to the org a ndwiches for $5. You want to review the way we featured in the Chapter 8 module Asume that the costs related to a Subway footing and a Subway franchise include the following Costem Details Cost per andwich Meats, cheeses, toppings Perfootlong Subro bread Per footlong $15.00 hour wage rate and each Labor cost perfootlong worker can make 30 sandwiches per $150 Credit card transaction $10 per transaction $0.15 $0.09 Electricity $360 per month dividend by 4.000 orders per month Rent $1.200 per month divided by 4000 orders per month Franchise and starts $36.000 Gded by 10 months 15 years vided by 4000 orders per month Franchise tee mortization 0.05 300 SON of sales Royalty free Advertising $023 Testorsales $600 per month vided by 4,000 15 E mente cost Cost perfootlong $541 NOTE: Assume o susred for the credit here to search vided to 130 months (15 years divided by 4.000 orders per month soos 8.0% of sales $0.40 Advertising fee 45% of sales 50.23 Equipment leasing cost $600 per month divided by 4.000 orders 50.15 Cost per footlong sandwich $5.41 NOTE: Assume all subs are paid for with a credit card Discussion Questions: Question 1: Bob owns a subway franchise and he is furlous at the thought of offering $5.00 footlongs. His comment was they costus 55.41 each so we will be upside down on each sub sold. I lose my shirt! Do you agree or disagree with Bob that this idea should be immediately rejected without any further analysis? If you don't agree with Bob, why do you thinkfurther analysis is required? Question N2: What are the relevant and irrelevant costs in this pricing decision? (hint there are relevant costs) Question #3: Can you think of any other reasons/factors besides the costs isted above that might be relevant to the pricing decision to offer the $5.00 footlongs? Use your imagination e to search