Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Subway, selling sandwiches, is located on a busy corner near many other businesses. Their busiest time is at mid - day. Rent for the location

Subway, selling sandwiches, is located on a busy corner near many other businesses. Their busiest time is at mid-day. Rent for the location is $830 per month and wages amount to $3,775 per month. Variable costs consist of supplies and sandwich ingredients that cost $2.25 per sandwich. The sandwiches are sold at a price of $8.85 each.
a. How many sandwiches must they sell to break even?
b. If the variable costs increase by $0.20 per sandwich, how many sandwiches must they sell to break even?
c. If the rent increases by $207.50, what would their profit be if they sold 1,490 units?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Cost Accounting A Managerial Emphasis

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

6th Canadian edition

978-0133392883

Students also viewed these Accounting questions