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Sabin's Cheesesteak Sammies Sells Gourmet Sandwiches

Question 112

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Sabin's Cheesesteak Sammies sells gourmet sandwiches. These cheesesteaks sandwiches are so delicious, that the sandwiches are the only item on the menu. In recent years, Sabin's breakeven point has been 25,000 cheesesteak sandwiches. Annual fixed cost are $250,000 and the sandwiches have a sales price of $15.
What is the variable cost per unit of each cheesesteak sandwich?

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Breakeven units = Fixed costs / Unit con...

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