Assume instead of one product (the Ripped Pig sandwich), Cat & Joe's Pig Rig served three items: 1. the Ripped Pig sandwich, which sells for $12 and had variable costs of 40% of sales price; 2. the Pork Taco, which sells for $9 and had variable costs of 35%; and 3. the Mac and Cheese Pulled Pork, which sells 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 a total of 125 customers. 

The sales mix is as follows: 25 customers would order Mac and Cheese Pulled Pork, 25 would order Pork Tacos, and 75 would order the Ripped Pig sandwich. 

Required:

Complete an analysis showing the financial results for the  scenario.

Answer rating: 100% (QA)

To analyze the financial results for the scenario we need to calculate the sales revenue variable co... View the full answer