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Question - Sub Haven, a small sandwich store, is located on a busy corner near many other businesses. The shop's busiest time is during the mid-day period. Rent for the location is $700 per month, and wages amount to $2800 per month. Variable costs consist of supplies and sandwich ingredients that cost $2.39 per sub sandwich. The subs are to be sold at a price of $5.88 each. Answer each of the following independent questions.
(a) How many sandwiches must the shop sell to break even?
(b) If the shop increases variable costs by $0.24 per sandwich, how many sandwiches must it sell to break even?
(c) If the rent increases by 8%, what would the profit be if the shop sold 1612 units?
(d) If the sandwich price was reduced by $0.24, how many sandwiches must the shop sell to make $868 profit?
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