Ricks Deli Emporium is a local deli and they sell a combination of hoagies and c

Question

Ricks Deli Emporium is a local deli and they sell a combination of hoagies and club sandwiches per month. Italian hoagies, paninis, and turkey/bacon clubs are the best sellers. Rick is trying to estimate her costs at different operating levels. Complete the following sensitivity table of total and per unit costs using the costs provided. Calculate the “per unit” costs to 3 decimal places. Use the format in the Excel template file.

The three levels of sandwich sales: 1,000; 1,500; 2,000

Fixed costs per week = $3,000

Variable cost per sandwhich= $1.80

SOLVE EXCEL BELOW

Explanation / Answer

Fixed cost will remain constant at all levels of output but variable cost will vary with the number of sandwiches prepared Number of sandwiches 1000 1500 2000 Variable cost ( at 1.80 per sandwich) 1800 2700 3600 Fixed cost ( at 3000) 3000 3000 3000 Total cost 4800 5700 6600 Variable cost / sandwich 1.800 1.800 1.800 Fixed cost / sandwich 3.000 2.000 1.500 average cost / sandwich 4.800 3.800 3.300 Variable cost / sandwich is calculated by dividing variable cost by sandwiches prepared Fixed cost / sandwich is calculated by dividing Fixed cost by sandwiches prepared Fixed cost / sandwich is calculated by dividing Total cost by sandwiches prepared

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