You and your best friend have decided to partner together and open a food truck where you are going to serve the best Peanut Butter & Jelly sandwich to all of your hungry customers. Your calculated depreciation for your food truck set-up will be $5,250 a year. You have negotiated a partnership agreement where you and your partner will have a guaranteed salary of $10,000 each. You and your partner will be working the food truck because you dont have the funds to start paying employees yet. Your rent for your food truck space will run $950 a month. Assume that utilities are included in your rent price. Your objective is to come up with the BEST peanut butter jelly sandwich combination with the options that you have been provided. This means that you and your partner need to agree on your quality standards for your product and then produce your product with the brands and types of peanut butter and jelly listed. You will need to keep track of the cost of the ingredients that you are using. Costs are provided by the ingredient on the price list provided. You also need to remember that the cost is on a per metric basis, so you will need to keep track of how much you use.

List of Supplies	Price
Peter Pan Creamy Honey Roast Peanut Butter	$ .08 per tablespoon
Peter Pan Crunchy Peanut Butter	$ .13 per tablespoon
Jif Creamy Peanut Butter	$ .09 per tablespoon
Jif Creamy Natural Peanut Butter	$ .10 per tablespoon
Welchs Grape Jelly	$ .05 per tablespoon
Smuckers Strawberry Jam	$ .08 per tablespoon
Blackburns Blackberry Jelly	$ .08 per tablespoon
Natures Own Whole Grain Bread	$ .16 per slice
Wonder Bread Class White Bread	$ .14 per slice

What are your monthly fixed overhead costs?

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What are your annual direct labor costs?

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What are your per sandwich direct materials cost?

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If you are open 20 days a month and you sell 75 sandwiches per day, what is your total direct

materials cost for the month, excluding any potential waste?

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If you are open 20 days a month and you sell 80 sandwiches per day, what is your total direct

materials cost for the month, assuming a 2% rate of waste?

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If you expect to sell 18,000 sandwiches for the year, what is your expected total direct materials cost for the year, assuming a 2% rate of waste?

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If you expect to sell 18,000 sandwiches for the year, what is your direct labor cost per sandwich?

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If you expect to sell 18,000 sandwiches for the year, what is your overhead cost per sandwich? Base this off of the budgeted sold units.

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If you expect to sell 18,000 sandwiches for the year, what is your total cost, assuming a 2% rate of waste on direct materials?

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