Reference no: EM132741135

Question: Assume instead of one product (the Ripped Pig sandwich), Cat & Joe's Pig Rig served three products: the Ripped Pig sandwich, which sold for $12 and had variable costs of 40% of sales price; the Pork Taco, which sold for $9 and had variable costs of 35%; and the Mac and Cheese Pulled Pork, which sold for $12 and had variable costs of 50%. Fixed costs were expected to remain at $10,000 per year (180 operational days) and income taxes were expected to be 20%. On a typical day, Cat and Joe would serve 125 customers. And 25 customers would order Mac and Cheese Pulled Pork, 25 would order Pork Tacos, and 75 would order the Ripped Pig sandwich. Assuming a constant sales mix, if the entrepreneurs wish to earn a target profit of $100,000 after tax, how many units of each item must be sold?