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Robin runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is $300.
Robin runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is $300. Robin's contribution margin is $2.00 per hot dog sold. She has recently added individual servings of potatos chips to her product offering. Each bag of potato chips has a contribution margin of $0.60 per bag. Robin sells 5 bags of potato chips for every 5 hot dogs. 1. What is Robin's weighted-average contribution margin per unit? 2. How many total units much Robin sell in a month to earn a target monthly profit of $1,000? 3. Of the total units needed to earn $1,000 of profit, how many are hot dogs and how many are bags of potato chips? 1. What is Robin's weighted-average contribution margin per unit? (Round the weighted-average contribution margin per unit to the nearest cent, ".xx") 2. How many total units much Robin sell in a month to earn a target monthly profit of $1,000? First identify the formula, then compute the breakeven point in units. (Enter decimals to two places, ".XX". Round your answer to the nearest unit.) (__________ + ___________)/____________ = Breakeven units
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