Let's have a hypothetical example of the Subway restaurant in the Franklin Park Mall here in Toledo. Assume that the store has calculated its costs as follows: Average selling price-$7.00 per sandwich, Average variable cost $3.00 per sandwich, Total fixed costs (including lease, depreciation of machines..etc.)- $6000 per month. Let's say they sell on average 100 sandwiches per day, and therefore their current average monthly sales of sandwiches are 3000 sandwiches per month. Assume that Caroline, the Ohio regional manager of Subway, is considering recruiting a quality manager to the Franklin Park Mall branch to boost sales. She is debating whether to pay for the new position a fixed salary of $1500 per month or a 6% variable n per sandwich ($7 * 6%-$0.42 cents per sandwich). Please discuss the following questions: 1. What is the current Break Even Point for this Subway store? and what is the current margin of safety? 2. Which option would you recommend Caroline and why (you may consider calcualting the BE point for each option to help with your answer)