Sara's Background:

- Sara wants to start her own business

- She is very good at making healthy sandwiches with healthy ingredients that taste delicious

- She decides this might be a good business opportunity while she is doing her CBU Post Baccalaureate diploma

There are 2 other sandwich offerings at CBU:

- Competitor 1 makes a very cheap and not very tasty sandwich. It is sold for $3 to students and staff at CBU. Sara estimates that Competitor 1 sells about 500 sandwiches/month.

- Competitor 2 makes a tasty sandwich, but it is not very healthy. It is sold for $5 to students and staff at CBU. Sara estimates that they also sell about 500 sandwiches/month.

Sara makes some calculations:

- X company has agreed to rent her a booth for $2,000/month

- She can rent a kitchen space and necessary equipment for $300 per month

- Another friendwill manage Sara's orders on social media for$200/month

- Sara can train & pay her friends to make sandwiches ($2 for each one made)

- Ingredients & packaging for each of her sandwiches will cost$3

Please answer below 2 questions in your own words:

- Q1: How much should Sara charge for her sandwiches? Justify (explain) your pricing recommendation.

- Q2: Based on your pricing recommendation, how many sandwiches must be sold each month to 'break-even'?