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Melinda is a potential franchisee of Subway Sandwich Shop Inc. (SSS) and is in the process of developing a business plan to present to potential
Melinda is a potential franchisee of Subway Sandwich Shop Inc. (SSS) and is in the process of developing a business plan to present to potential investors. Following are various projected cost data for the operation: The average order sells for $4, with food cost of $2. 2. What is the contribution of each sale toward covering fixed expenses? 3. What is the projected monthly break-even point in units? 4. The potential franchisee has a target before-tax net profit of $2,000 per month. What level of sales (in units and in dollars) must be achieved? 5. The potential franchisee has a target after-tax profit of $2,400 per month. What level of sales (in units) must be achieved? Assume a tax rate of 25%
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