Question 13

A vendor on Peachtree sells bratwurst hot dogs for $4.15. 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 $0.33. 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.

Question 14 (10 points)

A firm sells mid-range snowboards and estimates its demand curve to be Q = 13,700 30(P). Variable costs are $265. At what price does marginal revenue equal 0? Round your answer to the nearest dollar.