Old-Fashion Flavors Is a Local Ice Cream Shop The President of the Company Is Considering Adding Sandwiches to Is

Old-Fashion Flavors is a local ice cream shop.The company currently is showing an operating loss,as evidenced by the income statement below:
$$\begin{array} { | c | r | } \hline \text { Sales } & \$ 75,000 \\\hline \text { Costs: } & \\\hline \text { Food supplies } & 20,000 \\\hline \text { Labor } & 16,000 \\\hline \text { Utilities } & 4,000 \\\hline \text { Rent } & 12,000 \\\hline \text { Other } & 4,000 \\\hline \text { Manager's salary } & \underline{25,000} \\\hline \text { Total Costs } & 81,000 \\\hline \text { Operating Profits (Losses) } & \underline { ( \$ 6,000 ) } \\\hline\end{array}$$
The President of the company is considering adding sandwiches to the menu.Sales will be expected to increase by $60,000.The cost of sandwich supplies would be $30,000.Labor costs would increase 40% and other costs 10%.The current manager will continue to manage the operation.

a.Prepare a quantitative analysis of the decision to add sandwiches to the menu.
b.What qualitative considerations should the company consider in this decision?