Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A vendor on Peachtree sells bratwurst hot dogs for $3.75. His cart is open from 9 5, Monday through Friday. His variable costs average $0.85

A vendor on Peachtree sells bratwurst hot dogs for $3.75. His cart is open from 9 5, Monday through Friday. His variable costs average $0.85 per hot dog (depending mostly on toppings). He is considering making a couple of changes to his operation. First, he is going to upgrade both the hot dogs and the condiments, which will increase variable costs by $0.49. He is also considering a price increase to $4.85. Calculate the percent profit breakeven metric, with a change in variable cost, for the proposed changes. Report your answer as a percentage (whole number) and round to the nearest percentage point

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Shipping Finance A Practical Handbook

Authors: Stephenson Harwood

4th Edition

1787421406, 978-1787421400

More Books

Students also viewed these Finance questions

Question

Describe the typical grievance procedure.

Answered: 1 week ago