Po po The R (12 u b Sheps three types of submarine sandwiches RegSub 6 Kim and the Big Boy (16" long). Data concerning the three sandwiches is provided bow ROSSINI SUB SHOP DATA FOR PRODUCTS SOLD BY COMPANY Regular King Size Selling Price S 3.00 S 5.00 5 Variable Cost Per Sandwich S 2.00 3.00 Sales Mix Percentage 50% 35% S Big Boy 8 .00 5.00 15% The shop has monthly fixed costs of $30,000. The company has a marginal tax rate of 20% REQUIRED: (1) (3) What is the Sub Shop's weighted average contribution margin based on its current sales mix? Show supporting computations. Round your answer to two decimal places. What is the Sub Shop's break even point per month in total sandwiches and for each type of sandwich that it sells? Round your answers up to the next whole unit. How many total sandwiches and sandwiches of each type would the Sub Shop have to sell per month in order to earn a before tax profit of $15,000? Round your answers up to the next whole unit. How much in sales dollars for each type of sandwich would the Sub Shop have to sell per month in order to earn an after tax profit of $8,000? Round your unit answers up to the next whole unit and your dollar answers up to the next whole dollar The Rossini Sub Shop sells three types of Sun 112" long), and the Big Boy (16" long). Data concerning these three sandwiches is provided below. Problem 2. Product Regular ROSSINI SUB SHOP CALCULATION OF WEIGHTED AVERAGE CONTRIBUTION MARGIN Weighted Average Contribution Sales Mix Contribution Selling Price Variable Cost Margin Percentage Margin 3.00 S 2.00 S 1.00 50% S 5.00 2.00 35% 8.00 3.00 15% 0.50 King Size 3.00 Big Boy Total ROSSINI SUB SHOP CALCULATION OF VARIOUS AMOUNTS FOR COST-VOLUME-PROFIT ANALYSIS Sales For Desired Profit (Total Units)-(Total Fixed Costs + Desired Before Tax Profit)/Weighted Average Contribution Margin 2 Sales For Desired Profit (Total Units)-($30,000+ $0)/S1.65 Sales For Desired Profit (Total Units) - $30,000 / $1.65 -18,182 total units Regular King Size Big Boy = = = 18,182 x 50% - 9,091 18,182 x 35% - 6,364 18,182 x 15% - 2,728 Sales For Desired Profit (Total Units) -($30,000+ $15,000)/S1.65 Sales For Desired Profit (Total Units) - $45,000 / $1.65 - 27,273 total units Regular King Size Big Boy - - = 27.273 x 50% - 13,637 27,273 x 35% = 9,546 27.273 x 15% = 4,091 A DV CAND ANY ROSSINI SUB SHOP CALCULATION OF VARIOUS AMOUNTS FOR COST-VOLUME-PROFIT ANALYSIS (CONTINUED) 4) Before Tax Profit - After Tax Profit/(100% - Tax Rate Percentage) Before Tax Profit - $8,000/(100%-20%) - $8,000 / 80%= $10,000 Sales For Desired Profit (Total Units) = ($30,000+ $10,000)/$1.65 Sales For Desired Profit (Total Units) - $40,000 / $1.65 - 24,243 total units Regular King Size Big Boy - = - 24,243 x 50% - 12,122 x $3.00 - $36,366 24.243 x 35% - 8,486 x 55.00 = $42,430 24,243 x 15% - 3.637 x $8.00 = $29,096