Question
A vendor on Peachtree sells bratwurst hot dogs for $4.00. His cart is open from 9 - 5, Monday through Friday. His variable costs average
A vendor on Peachtree sells bratwurst hot dogs for $4.00. His cart is open from 9 - 5, Monday through Friday. His variable costs average $0.70 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 $0.52. He is also considering a price increase to $4.75. 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started