Mikey's Sandwich Shop expects to sell 200,000 sandwiches next year at an average price of $5.00.Variable cost of a sub is $3.00.Cash fixed costs are $85,000, depreciation $95,000 and the tax rate is 25%.If the price increases to $5.50 and all other variables remain the same, how much will free cash flow increase?

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The Answer of Mikey's Sandwich Shop expects to sell 200,000 sandwiches next year at an average price of $5.00.Variable cost of a sub is $3.00.Cash fixed costs are $85,000, depreciation $95,000 and the tax rate is 25%.If the price increases to $5.50 and all other variables remain the same, how much will free cash flow increase?

Mikey's Sandwich Shop Expects to Sell 200,000 Sandwiches Next Year