=+4-49 KK Sales mix, two products OBJECTIVES 1, 2, 7 Half-Time Pty Ltd currently sells hot dogs at the local cricket grounds. In a typical summer month, the stall reports a profit of $13500 with sales of $75000, fixed costs totalling $31500. The variable cost of each hot dog is $0.96.

John, the proprietor, plans to start selling wedges with chilli and sour cream dipping for $7 each. The variable cost of each serve of wedges is $2.28 and a new fryer as well as another staff member to help cook the wedges will increase monthly fixed costs by $13212. Initial sales of wedges are expected to be 7500 serves. Some of the wedges sales will come from current hot dog purchasers; thus, John expects monthly hot dogs sales (at current prices) to decline to $45000. After six months of selling wedges, John believes that hot dogs sales will start to increase again.

Required 1 Determine the monthly break-even sales in dollars before John adds wedges to the menu.