2. For the following Sue\'s business, define the unit of sale and calculate the

Question

2. For the following Sue's business, define the unit of sale and calculate the economics of one unit (EOU). After understanding the meaning of EOU and reviewing different examples in your textbook, the exercise below will allow you to practice how to define and calculate an EOU. Your Course Business Plan (to be developed by you as your Final project) will require the definition of your EOU, in other words, what is going to be sold by you and how much it will cost.

Sue, of Sue's Sandwich Shoppe, sells sandwiches and sodas from a sidewalk cart in a popular park near her house. She sets up her cart in the summers to earn money for college tuition. Last month she sold $1,240 worth of product (sandwiches and sodas) to 100 customers. She spent $210 on the sandwich ingredients and buying the sodas wholesale. Her unit is one sandwich ($4) plus one soda ($1).

Explanation / Answer

Sue of Sue’s Sandwich Shoppe, sells sandwiches and soda from a sidewalk cart in a popular park near her house. She sets up her cart in the summers to raise money for college. Last month she sold $1,500 worth of product (sandwiches and sodas) to 135 customers. Her unit is one sandwich (COGS $4.00) plus one soda (COGS $1.00). The unit of sale is a sandwich and a soda. To figure out profit we need to take Revenue: $1,500 and subtract the cost of a sandwich and soda time how many sold. So $1,500-[($4.00+$1.00)*135] = $1,500 - $675 = $825 Profit. Now to figure out per unit divide $825 by the number of units sold 135. So $825/135 = $6.11 profit per unit.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.