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Tony Stark is so attractive that sales at his Ironman Dogs hotdog stand have skyrocketed. He has caught wind of Friends in Low Places' quest

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Tony Stark is so attractive that sales at his Ironman Dogs hotdog stand have skyrocketed. He has caught wind of Friends in Low Places' quest for world domination and will not be able to retire from saving the world after all. In order for his hotdog business to remain successful, and to avoid tipping off FLP that he's on to them, Tony has decided that the best thing to do is to open 4 more stands staffed by employees wearing Ironman suits so people will not be able to tell which stand he is actually at. Mr. Stark designed and manufactured one cart, using only scrap parts he had sitting around his workshop, but will have to build the other 4 at a cost of $4,000 each. Necessary licenses and fees are $2,000 for the first cart, and $500 for each additional cart. Tony will pay the other four employees $3,000 a month to staff the carts. They will wear Ironman suits that he already has so he will not need to spend any additional funds on the costumes. Hot dog buns cost 10 cents each and hot dogs will cost him 60 cents each. Tony Stark plans to sell his "Ironman Dogs" for $4 each. Use this information to answer the following questions. You idolize Tony Stark and are excited that you can finally "be just like him" by opening your own hot dog stand. Mr. Stark has agreed to sell you a hot cart for $5,000. You have saved $1,000 and will get a loan to pay for the rest of your fixed start up expenses. You approach a local bank and they have agreed to loan you the remaining amount. Your interest expense will be $800. Initially you do not intend to hire any additional employees. Your applicable variable costs will be identical to Mr. Stark's and you will also charge $4 per hot dog. 31. If you sell 4,000 Ironman Dogs, what is your DOL? (Round to two decimal places). A) 1.04 B) 1.91 C) 2.13 D) 2.12 32. The fact that you are getting a bank loan to pay for some of your start up costs will affect which of the following? A) DOL B) DFL C) DCL D) Both A and B E) Both B and C

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