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Simpson Company sells its famous seafood sandwiches from a rented food truck. Simpson has no inventories. The business has the capacity to sell up to
Simpson Company sells its famous seafood sandwiches from a rented food truck. Simpson has no inventories. The business has the capacity to sell up to 35,000 sandwiches per year. The table below summarizes sandwich costs for 20X1 (sold 10,000 sandwiches) and 20X2 (sold 20,000 sandwiches): Cost summary 10,000 sandwiches 20,000 sandwiches Materials $55,000 $110,000 Salaries and rent $40,000 $40,000 Totals $95,000 $150,000 Part A. Assuming the same cost structure as above, what would be the total projected cost for 30,000 sandwiches
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