Rachel runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is

$200.

Rachel's

contribution margin per unit is

$2.00,

and her contribution margin ratio is

50%.

1.	How many hot dogs does Rachel need to sell each month to earn a target profit of $900 a month?
2.	How much sales revenue does Rachel need to generate each month to earn a target profit of $900 per month?

1. How many hot dogs does

Rachel

need to sell each month to earn a target profit of

$900

a month?First identify the formula, then compute the number of hot dogs

Rachel

will need to sell each month to earn a monthly target profit of

$900.

(		+		)			=	Sales in units
(		+		)			=

2. How much sales revenue does

Rachel

need to generate each month to earn a target profit of

$900

per month?Enter the formula, then compute the sales dollars needed to earn a target profit of

$900

per month.