Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sub Place, a small sandwich store, is located on a busy corner near many other businesses. The shop's busiest time is during the mid -

Sub Place, a small sandwich store, is located on a busy corner near many other businesses. The shop's busiest time is during the mid-day period. Rent for the location is $1000 per month, and wages amount to $2000 per month. Variable costs consist of supplies and sandwich ingredients that cost $2.14 per sub sandwich. The subs are to be sold at a price of $5.69 each. Answer each of the following independent questions.
(a) How many sandwiches must the shop sell to break even?
(b) If the shop increases variable costs by $0.23 per sandwich, how many sandwiches must it sell to break even?
(c) If the rent increases by 12%, what would the profit be if the shop sold 1575 units?
(d) If the sandwich price was reduced by $0.23, how many sandwiches must the shop sell to make $1082 profit?
(a) The shop must sell 846 sandwiches to break even.
(Round up to the nearest whole number.)
(b) If variable costs increase by $0.23 per sandwich, the number of sandwiches required to break even is 904.
(Round up to the nearest whole number.)
(c) If the rent increased by 12% and the shop sold 1575 units, the shop would make a(n)! profit.
(Round to the nearest cent as needed.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Susan Hamlen

5th Edition

1618534246, 9781618534248

More Books

Students also viewed these Accounting questions

Question

=+b) What is the factor?

Answered: 1 week ago

Question

I would have had to wait a long time for a reply.

Answered: 1 week ago

Question

Id already thrown away the receipt.

Answered: 1 week ago