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Sam runs his own sandwich truck on the U of C campus. The monthly cost of the truck and necessary campus permit is $1,785. Sam
Sam runs his own sandwich truck on the U of C campus. The monthly cost of the truck and necessary campus permit is $1,785. Sam spends $6.30 on each sandwich sold, including all of the ingredients, condiments, and paper products. He sells each sandwich for $10.50.
a. How many sandwiches does Sam have to sell each month to break even?
b. Predict operating income for a month in which Sam sell 3,600 sandwiches. Note: Do not use negative signs with any of your answers.
\begin{tabular}{|l|ll|} \hline Contribution margin & $ & 0 \\ \hline Total fixed cost & $ & 0 \\ \hline Break-even point (units) & & 0 \\ \hline \end{tabular} \begin{tabular}{|l|ll|} \hline Contribution margin & $ & 0 \\ \hline Total fixed cost & $ & 0 \\ \hline Break-even point (units) & & 0 \\ \hline \end{tabular} \begin{tabular}{|l|ll|} \hline Total contribution margin & $ & 0 \\ \hline Less: Fixed cost & & 0 \\ \hline Operating income & $ & 0 \\ \hline \end{tabular}Step by Step Solution
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