Carla Thomas, the owner of Sandwiches, is preparing to meet with Alan Philips, the new manager of Sandwiches, Inc., Unit No. 2, in mid-December 2017. The primary purpose of this meeting is to finalize the 2018 operating plan for the location, as well as to conduct sensitivity analysis related to the assumptions included in the budget. Thomas has decided that, due to the growth of her business, she can no longer continue to manage the operation as she did when there were only a couple of locations, so she is in the process of implementing a more formal and extensive planning and budgeting process. This case may be used as a stand-alone case on budgeting, or it may be paired with Boulevard Sandwiches, Inc. (B) (UVA-C-2434) in a module on budgeting and strategic profitability analysis or flexible budgeting. Excerpt UVA-C-2433 Jan. 14, 2020 Boulevard Sandwiches, Inc. (A) Carla Thomas pulled into the parking lot of Sandwiches, Inc., Unit No. 2. It was a beautiful day in mid-December 2017, and she was scheduled to meet with Alan Philips, the new manager of Unit No. 2, to finalize the 2018 profit plan for the Unit No. 2 sandwich shop. She hoped this meeting would be a good first step toward increasing sales and improving profitability at all her sandwich shop locations. Background Unit No. 2 was one of four sandwich shops owned by Thomas. She opened her first sandwich shop in 2007 in downtown Sandown, Virginia. She managed this shop for three years, experimenting with menus, pricing strategies, and customer-service concepts. Her goal was to create the biggest and best sandwich shop in the city—one that was known for a pleasant atmosphere; fast and courteous service; high-quality, freshly prepared sandwiches; and reasonable prices. As with many other sandwich shops, the menu was posted on the wall, and customers went through a line to place their orders, pick up their beverages, and pay the cashier. Customers' orders were then prepared by employees in a small kitchen area and brought to their tables by servers. . . .