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The three pages all go together. Please assist. Thank you. 1. (36 pointsl CVP Analysis The Subway Sandwich Shop, Inc. is seeking to sell new

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The three pages all go together. Please assist. Thank you.

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1. (36 pointsl CVP Analysis The Subway Sandwich Shop, Inc. is seeking to sell new franchises for its business. The company is in the process of developing a business plan to present to potential investors. Following are various projected cost data for a typical sandwich shop: Lease of store space 3500/ month Equipment lease $500/month License $240/year Advertising 2.5% gross sales revenue Royalty 8% of gross sales revenue Salaries $2,000/ month Utilities $400/month Insurance $1,500/year The average order (sandwich) sells for $4, with food cost of $2. 1. What is the contribution of each order (sandwich) toward covering fixed expenses? Put your answer in the box below and show and label your computations below that. 2. What is the projected monthly breakeven point in units? Round your answer up, to nearest whole unit. Put your answer in the box below and show and label your computations below that. 1. CVP Analysis (continued! 3. Draw a CVP graph and carefully label it as we did in class. 4. A potential franchisee has a target before-tax profit of $2,000 per month. What level of sales (in units and in dollars, per month) must be achieved to meet the franchisee's profit goal (round up, to nearest whole unit)? Put your answers in the spaces provided and show and label your computations below that. e) Suppose a different potential franchisee has a target after-tax prot of $1,800 per month. To achieve this prot objective, what level of sales {in units and in dollars, per month} must be achieved if the tax rate, t, is 35% [roundup to nearest whole unit)? Put your answers in the spaces provided and show and label your computations below that. f) What is the degree of operating leverage (DOL) of a typical sandwich shop at the volume level needed to achieve a targeted before-tax profit of $2,000 per month? Round your answer to 2 decimal places. Put your answer in the space provided and show and label your computations below that. DOL 3) From the sales volume level needed to achieve the monthly pre-tax profit goal of $2,000, what would be the percentage change in pre-tax prot if sales increased by 5%? Put your answer in the space provided and show and label your computations below that. Put your answer in 2 decimals (e.g. 12.34%)

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