Manager's salary Total Costs Operating Profits (Losses) 81,000 (S6,000) e President of the company is considering adding sandwiches to the menu. Sales will be expected to increase by $60,000. The cost of sandwich supplies would be $30,000. Labor costs would increase 40% and other costs l096. The current manager will continue to manage the operation a. Prepare a quantitative analysis of the decision to add sandwiches to the menu. b. What qualitative considerations should the company consider in this decision? PROBLEM BBB: FRIENDLY MANUFACTURING COMPANY (20 points) The cost accountant for the Friendly Manufacturing Company has provided you with the following information for the month of July Total Fixed Costs Variable costs Per unit $27.50 84.75 Direct labor Direct materials Manufacturing $120,000 50,000 75,000 14.25 overhead Marketing costs 5.30 Administrative costs 2.90 Selling price Required Assuming the company produced and sold 5,000 units, and there were no units in inventory on 210.00 July 1, prepare the following income statements for the month of July: (a) Contribution margin income statement. (b) Gross margin income statement. Page 3 of 11