Refer to Scenario 9

question 322

Multiple Choice

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. What must the average price per sandwich be for the deli to earn a normal return?

• A) $1
• B) $3
• C) $4
• D) $5.92

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Definitions:

True Desire

The genuine longing or aspiration for achieving something, stemming from deep personal motivation.

Win-Win

A situation or outcome where all parties involved achieve benefits or favorable results, often used in negotiation and conflict resolution.

Win-Lose Conflict

In win-lose conflict one party achieves its desires and the other party does not.

Party Achieving

The act of completing or fulfilling a task or goal, typically used in the context of an individual or group's success.