If we marked up the cost of our grilled cheese sandwich by 300% the total cost of our sandwich would equal $16.11.

(1) Assume you need to achieve a target profit (operating income) of $2,000. Given your present cost structure, and a 300% markup on product cost as your price, how many menu items would you need to sell to break-even?

DL MOH | Total Cost/Sandwich Rate MOH $9.860.00 50% 4.930.00 Fixed MOH Rate Fixed MOH 80% $3.944.00 Variable MOH Variable Rate MOH 20% $986.00 DL Cost/Sandwich S 1.97 DM Cost/Sandwich S 2.41 Total MOH $0.99 Total Cost/Sandwich S 5.37