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 question:s 25. How many hot-dogs will Tony Stark need to sell to break even? (Round UP to the nearest whole hot dog) A) 8,000 B) 9,697 C) 10,910 D) 12,000 26. If each cart sells 2,000 hot dogs, what will be Tony Stark's total costs? A) $37,000 B) $37,600 C) $39,000 D) $43,000 27. Suppose Mr. Stark decides to finance his business expansion. He gets a $20,000 loan from If each cart sells 4,000 the bank with fixed interest payments of $1,000 per month. hot-dogs, what is Tony Stark's degree of operating leverage? A) 1.04 B) 1.94 C) 2.53 D) 3.75 28. Suppose Mr. Stark decides to finance his business expansion. He gets a $20,000 loan from If each cart sells 4,000 the bank with fixed interest payments of $1,000 per month. hot-dogs, what is Tony Stark's degree of financial leverage? *Hint: TR - TC- EBIT ) 1,00 B) 1.03 C) 1.70 D) 2.30 29. Using your results for DOL and DFL solve for Tony Stark's DCL. (Round up as necessary) A) 1.03 B) 1.94 C) 2.00 D) 3.00 30. How many total Ironman Dogs hotdog stands does Tony Stark have? D) 5 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 question:s 25. How many hot-dogs will Tony Stark need to sell to break even? (Round UP to the nearest whole hot dog) A) 8,000 B) 9,697 C) 10,910 D) 12,000 26. If each cart sells 2,000 hot dogs, what will be Tony Stark's total costs? A) $37,000 B) $37,600 C) $39,000 D) $43,000 27. Suppose Mr. Stark decides to finance his business expansion. He gets a $20,000 loan from If each cart sells 4,000 the bank with fixed interest payments of $1,000 per month. hot-dogs, what is Tony Stark's degree of operating leverage? A) 1.04 B) 1.94 C) 2.53 D) 3.75 28. Suppose Mr. Stark decides to finance his business expansion. He gets a $20,000 loan from If each cart sells 4,000 the bank with fixed interest payments of $1,000 per month. hot-dogs, what is Tony Stark's degree of financial leverage? *Hint: TR - TC- EBIT ) 1,00 B) 1.03 C) 1.70 D) 2.30 29. Using your results for DOL and DFL solve for Tony Stark's DCL. (Round up as necessary) A) 1.03 B) 1.94 C) 2.00 D) 3.00 30. How many total Ironman Dogs hotdog stands does Tony Stark have? D) 5
