A vendor prepares 90 sandwiches every day and sells them at $18 per piece. For each sandwich, he spends $10 on raw material and $2 for packaging. He also pays $60 per month as stall rent, $30 per month for electricity, and $15 per month for other miscellaneous costs. Each leftover sandwich can be sold at $4, and lost sales are taken as $1 per unhappy customer. On a certain day in September, due to a road closure, he was able to sell only 70 sandwiches. Assume there are 30 days in the month. Calculate the vendor's profit for that day.

A vendor prepares 90 sandwiches every day and sells them at $18 per piece. For each sandwich, he spends $10 on raw material and $2 for packaging. He also pays $60 per month as stall rent, $30 per month for electricity, and $15 per month for other miscellaneous costs. Each leftover sandwich can be sold at $4, and lost sales are taken as $1 per unhappy customer. On a certain day in September, due to a road closure, he was able to sell only 70 sandwiches. Assume there are 30 days in the month. Calculate the vendor's profit for that day.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...

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