Question

The R the e sperienwiches: Relige Data concoming the three dicks is provided Big Boy ROSSINI SUR SHOP DATA FOR PRODUCTS SOLD BY COMPANY Regular King Size Selling Price S 3.00 S 5.00 Variable Cost Per Sandwich S 2003 3.0 Sales Mix Perage 154 S S 5.00 155 The shop has monthly fixed costs of 530,000. The company has a marginalias me of 20% REQUIRED (1) What is the Sub Shop's weighied 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 sci per month in onder to cam 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 carn an after tax profit of $8.0007 Round your unit answers up to the next whole unit and your dollar s up to the next whole della

Answer 1

Dala for the Product on cold. Selling King Size Big Ba Price IR 5 Varlable Sales cost per Sandwich mix percentage 2 soy 185 35%. Contribution Sales - Variable Cost 18 1 92 !! weiguted querose contribution weiguts x contribution Regular) + weight & contribution (kin, size + weight & Contribution 12) z 50% X 2 + 35%x 2 + 18).x3 = 45+ 17+ •45 ) 1.65/ unito weiguted average contribution - 1:68/unit Break even point means a point where total Income = Total Cost . Hence it is a Non Gain / Loss situation points formular Break even Point (unit) = fixed cost Contribution (per unit) Break even point = $30000 18182 unit, $1.65 Break even point for each type of sandwich. Assume that :- Only One Type of Sund wich is cold. Regular 1 king size Big Boy fired wit ($) 30oo o Topco | Зооор contribu Hou (per unit) 8 2 83 Break even font ( per unit) | 30000 unily! 18000 units I 16000 units

3. Totul Sandwiches required Profil befor eap & Nooo. to sell to earn a net formula fixed cost t Profil Required Contribution (per unit) 2 2727 3 units 28 30000 t 15000 1165 4. After Heuce Par Profil Required $8000 il means Profil before , marginal Tar Pate 20% far is 8000 8100oo. - • • - - Appleging above formulat fired Cost & Required Profit Contribution (per unit) No. of unity required to sell it Iudividual sale is considered. 1 Pegular Kiry size Big Boy Aired cost g neopo 870000 $38000 Required Profit - $ 10000 $10000 40000 40000 40000 Contribution ( Perunit) 1 No of unit required 40000 units doooo vaits 13334 units to sell 2 - Alt-solution Tu Case Sale of unit considered in comblaation. tired cost & Profit - 40000 weigned Average contribution (per unit) 165 2) 24943 units. we can also bilengate in term of Lins according to respective weights." • •