Refer to Scenario 9.4 below to answer the question(s) that ...

[future617RT]

Refer to Scenario 9.4 below to answer the question(s) that follow. 


SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week). The deli is open 52 weeks per year.





Refer to Scenario 9.4. Suppose the average price per sandwich is $5.50. What is the annual profit of the deli?

◦ -$22,000
◦ $78,000
◦ $130,000
◦ $244,000

[irishcancer18]

$78,000