Problem 2

Assume that you operate a roadside hotdog stand for 50 weeks a year. The hotdog cart cost you $4,546.43 and is expected to last three years. You purchased two 5- pound propane tanks at $65 each which are expected to last a year and spend $6 for each pound of propane. You use 30 pounds of propane per week. You had to buy a yearly business license for $52 and spend $20 a week cleaning the hotdog cart. You handle your condiments as fixed costs. You get 6 pump jugs of ketchup at a cost of $27.49 and use 5 jugs a week. You can buy 6 pump jugs of yellow mustard at $24.60 and brown spicy mustard at $9.39 a jug. You use 4 jugs of yellow mustard and 2 jugs of brown spicy mustard a week. You can get 4 gallons of relish at $21.17 and use 1 gallon of relish per week. You also provide shredded sauerkraut which costs you $43.65 for 12 containers and you use container per week. You also get diced white onion at a cost of $38.78 for 12 containers and use of a container per week. You have a small off-site location where you store your excess product in a refrigerator and on shelfs. The refrigerator cost $600 and is expected to last 5 years. The operating expense for the refrigerator is $65 a year.

What is your fixed cost per week?