1. Taylor runs her own hot dog stand. The monthly cost of the cart rental and business permit is $300. Rachel spends $0.50 on each hot dog sold, including bun and condiments. She sells each hot dog for $2.00,

1) What is the contribution margin per unit?

2) What the contribution margin ratio?

3) Predict operating income for a month in which Taylor sells 1,000 hot dogs.

4) How many hot dogs does Taylor need to sell each month to breakeven?

5) How much sales revenues doe Taylor need to generate each month to breakeven?

6) How many hot dogs does Taylor need to sell each month to earn a target profit of $900 a month?

7) How much sales revenue does Taylor need to generate each month to earn a target profit of $900 per month?