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Question 21 SHI Stadium Concessions currently sells hot dogs. Normally, each month, the stand reports a profit of $13,048 with sales of $52,000, fixed costs

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Question 21 SHI Stadium Concessions currently sells hot dogs. Normally, each month, the stand reports a profit of $13,048 with sales of $52,000, fixed costs of $14,952, and variable costs of $0.48 per hot dog. Next year, in addition to hot dogs, the company plans to start selling nachos for $3.20 per unit. Nachos will have a variable cost of $0.80 and new equipment and personnel to produce nachos will increase monthly fixed costs by $11,724. Initial sales of nachos should total 10,000 units. Most of the nacho sales are anticipated to come from current hot dog purchasers, therefore, monthly sales of hot dogs are expected to decline significantly Compared to the number of hot dogs required to breakeven monthly during this year, how many fewer hot dogs would the company have to sell to breakeven monthly next year? Assume a constant sales mix next year of 3 hotdogs and 5 units of nachos. 11,100 20,850 16,475 17,450

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