Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. In June she sold $3,000 worth of product (sandwiches and sodas) to 300 customers. She spent $600 on the sandwich ingredients and sodas. Her monthly costs are set forth in the table. Indicate which of these costs (even if not incurred in June) are fixed costs or variable costs by typing an F or V in the third column.
Item Amount Fixed or Variable?
Utilities $60 F
Sodas $200 V
Salary (to herself) $1500 F
Advertising $0 F if she used advertising
Sandwich ingredients $400 V
Insurance $50 F
Rent $300 F
How much is Sue's COGS per unit? (For this question you should use the average sale as the per unit price)