1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aalyn [17]
3 years ago
13

Does each Subway $5 Footlong cost the franchisee more than $5? Subway, the fast food restaurant franchise, recently announced it

is bringing back the "$5 Footlong" promotion. Hundreds of Subway franchise owners are protesting the promotion, saying that they cannot afford to sell the footlong sub sandwiches for $5. Assume that the costs related to a Subway footlong and a Subway franchisee include the following:_______.
Cost per sandwich $ 2.00 Details Per footlong Labor $14.00/hour wage rate, each worker can make 7 sandwiches per hour Cost item Food ingredients Labor cost per footlong Credit card transaction fee Electricity Rent 2.00 1.0% + $0.10 per transaction $360 per month divided by 4,000 orders per month Rent $1,200 per month divided by 4,000 orders per month 0.15 0.09 0.30 Franchise and startup fees $36,000 divided by 180 months (15 years) divided by 4,000 orders per month 8.0% of sales 4.5% of sales Franchise fee amortization 0.05 Royalty fee 0.40 0.23 0.15 Advertising fee Equipment leasing cost Cost per footlong sandwich $600 per month divided by 4,000 orders $ 5.37 Assume that all transactions are paid for using a credit card.
1. Identify each of the listed costs of one footlong sub sandwich as either variable, fixed, or mixed.
2. What costs and factors do you think should be relevant to the footlong sub sandwich pricing decision? Explain.
3. What is the contribution margin of each $5 footlong sub sandwich?
4. Do you agree that a Subway franchisee would lose money for each footlong sold for $5? Why or why not?
Business
1 answer:
g100num [7]3 years ago
5 0

Once upon a time there was a american male named NF. He was the lord of the flies. He ruled all flying insects and he used them against his enemies. Which were humans and spiders. You see, humans kill all bugs that they see... and spiders feed on whatever FLIES into their web. In NF's eyes, they were his insects' natural predators. So what he would do is get a group of flying insects (that contains like 100,000 a pack) and when humans try to attack or swat at them in any way... they would eat all the flesh of the bones on their face in 2.5 seconds. His buddies were so dangerous and well known that this was a worldwide thing. Nf wasn't always a man with a giant army behind him. He grew up poor... living on a bus stop. No mom. No Dad. Nf was so filthy, that bugs had surrounded him everywhere he went. At nighttime, when he was bored, he'd always talk to insects. And his imagination was so big, That he thought they talked back. He was a ten at the time. Sometimes, when he asked for money, younger children used to laugh at him and called him “dirty boy.” He was walking to school one day. And a teacher had noticed him... she called out "where are your parents?". He didn't respond... but walked  faster. She tried her best to keep up with him... but she couldn't. "WAIT NF.. HOW ARE YOU RUNNING SO FAST!!" She had reached the limit on her rusty old car. Which was only ninety-five miles per hour. His teacher got out of her vehicle and put her glasses on... and saw what was really going on. A huge group of insects (his lil crew) had been flying him. She had a heart attack and died  once she realized what was really going on. There was a tale going around that when they found the body (body?), there was no meat... or no skin. Nf was then considered a very dangerous boy because he was the last one to see her before her death day. They had absolutely no evidence on how he committed the murder, but still... he was guilty. HE WAS ARRESTED AT THE AGE OF TEN. No prisoner had enough guts to even go near him. HE SERVED 2 YEARS FOR SOMETHING HE NEVER DID. He never had faced hunger... because his flies used to come in and bring him food. One day a police officer had discovered the group of flies on their way to the young boy. Police officer Pete was frightened and shot that bad boy twice. BOOM!! BOOM!! He hurt 500 flies. And because of the speed of the bullet... it had broken through the metal bars... and shot NEAR Nf's face. He was afraid. And cried for help. A pack of police officers had rushed through the door and saw officer Pete lying on the ground. Dead. No meat. No skin. No living thing besides NF. The flies had disappeared . How? No one ever knew (at the moment). But they rewinded the security cameras. And saw exactly what happened. NF was set free out of jail. Everyone that saw him called him “Lord of the Flies”. They tried to put him into a foster home.... but the flies quickly picked him up.The people didn't even bother to chase after him. Or try to find him. They knew that THOSE "INSECTS" were his bestest buddies. The word flew around quickly. Don't overthink the situation. Nf was no super villain or anything... he was just simply The Lord of the Flies.                                                                      

You might be interested in
What is the change due if a $5 bill is tendered for a charge of $4.21?
never [62]
What is the change due if a $5 bill is tendered for a charge of $4.21?

A.0.79

3 0
3 years ago
Barkatorium Pet Supplies established a line of credit with its local bank and used (borrowed) $95,000 against it to purchase its
malfutka [58]

Answer:

True

Explanation:

Since it is given in the question that the $95,000 amount is borrowed from the local bank against the purchase its first year's inventory and the same is to be repaid before the end of its fiscal year.

So if the payment is made within the one year the same is to be classified as  current assets and is to be reported on the balance sheet

6 0
3 years ago
Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing
pshichka [43]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $95,000 per quarter.

Direct labor per unit= 0.25*14= $3.5

Direct labor equation= 3.5*x

x= units produced

For example:

100 units

Direct labor= 3.5*100= $350

7 0
3 years ago
What is a credit card balance
QveST [7]
That's the amount of charges owed to the credit card company. 
4 0
3 years ago
Read 2 more answers
Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 1
Hitman42 [59]

Answer:

124.38%

Explanation:

capacity utilization rate is the rate at which productive capacity or output is being utilized. It is denoted by the equation:

Capacity utilization = [actual output/ potential output] %

= (45,400/365) %

=124.38%

8 0
3 years ago
Other questions:
  • A restaurant sells three wines at $30, $40, and $50 per bottle. When it adds another wine to the list at a price of $22, the sal
    12·1 answer
  • Mars inc., a manufacturer of cat food in texas, places an ad in a publication aimed at veterinarians. the ad explains why they s
    9·1 answer
  • you are invited to play the following game: an urn holds two white and three black balls, and you draw three balls randomly. If
    10·1 answer
  • On Monday, the regular price of a widget was discounted by 25 percent. On Tuesday, the reduced price was discounted by 50 percen
    13·1 answer
  • E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
    13·1 answer
  • What is the best way to display data if you have more than 10 results?​
    14·1 answer
  • A computer programmer turns over all access to
    10·2 answers
  • Why should a person create a budget
    9·2 answers
  • A.The loss on the cash sale of equipment was $22,125 (details in b).
    11·1 answer
  • High inflation imposes various costs on society. What can policymakers do to keep inflation at a low level?.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!