There is a new sports pub in Jackson downtown. The pull sells various mixed drinks with a contribution margin of $2.80 each. The owner of the pub is considering adding sandwiches and hamburgers to its menu as more and more customers are asking for food in addition to drink. This will also help the owner to meet competition from other bars nearby, some of which provide extensive menus.

The pub need to hire a part-time cook for its new menu and the monthly wage is $3,100. The additional fixed cost for the new menu will be $1,000 per month. Each sandwich will cost $0.40, $2.10, and $0.90 for bread, meat, and other items, respectively. Each hamburger will cost $0.60, $2.25, and $0.85 for buns, meat, and other items, respectively. The sandwich will be sold for $5.00 each while the hamburger will be $6.25 each. We assume that there are 30 days in a month.

1) If the numbers of sandwiches and hamburgers can be sold are projected to be in a ratio of 1 to 3, what is the monthly break-even point in terms of sandwiches and hamburgers?

2)If the numbers of sandwiches and hamburgers can be sold are projected to be in a ratio of 4 to 1, what is the monthly break-even point in terms of revenue dollar amount for sandwiches and hamburgers?

3) At the end of 3 months, the owner find the pub has sold 3,000 sandwiches and 6,000 hamburgers. What is the operating profit per month on the extended menu?

4) The pub owner believes, at least 40 extra mixed drinks are sold daily because of the extended menu. How does this affect the monthly operating income?