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Julia owns a sub sandwich shop and has the following costs each month:

Labor costs (management & workers) $8,000
Insurance = $900
Rent = $800
Utilities $300
Average cost of ingredients/ packaging for each sub= $1.11

1-Julia sells subs for$6 each how many subs will she need to sell to break even each month based on the costs listed above?

2-in order to make that break even number more manageable. Julia has found a new meat and vegetable distributor that can lower the average cost of ingredients /packaging down to $0.89 per sub if all of the other costs remain the same what would the new breakeven point be?

3-Julia decides to reposition her sub shop as “upscale” with fresher meats and vegetables along with premium packaging for the subs her new price point is $10 per sub but her variable costs have rise into $4.12 per sub if only the other cost remain the same what is the break even point now?

Respuesta :

francocanacari

1) She needs to sell 2045 subs.

Calculus

Given that Julia owns a sub sandwich shop and has the following costs each month:

  • Labor costs (management & workers) $8,000.
  • Insurance = $900.
  • Rent = $800.
  • Utilities $300.
  • Average cost of ingredients/packaging for each sub= $1.11.

To determine:

1- If Julia sells subs for $6 each, how many subs will she need to sell to break even each month based on the costs listed above;

2- If, in order to make that break even number more manageable, Julia has found a new meat and vegetable distributor that can lower the average cost of ingredients /packaging down to $0.89 per sub if all of the other costs remain the same, what would the new break even point be; and

3- If Julia decides to reposition her sub shop as “upscale” with fresher meats and vegetables along with premium packaging for the subs, her new price point is $10 per sub, but her variable costs have rise into $4.12 per sub if only the other cost remain the same, what is the break even point now;

the following calculations must be made:

1)

  • 8000 + 900 + 800 + 300 = Fixed costs
  • 10,000 = Fixed costs
  • 10,000 + 1.11 x 1000 = 11,110
  • 6 x 1000 = 6000
  • 10,000 + 1.11 x 2000 = 12,220
  • 6 x 2000 = 12000
  • 10,000 + 1.11 x 2200 = 12,442
  • 6 x 2200 = 13200
  • 10,000 + 1.11 x 2050 = 12,275.5
  • 6 x 2050 = 12300
  • 10,000 + 1.11 x 2040 = 12,264.4
  • 6 x 2040 = 12240
  • 10,000 + 1.11 x 2045 = 12,269.95
  • 6 x 2045 = 12270

Therefore, she needs to sell 2045 subs.

Learn more about calculus in https://brainly.com/question/22801800

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