Tonys Hot Dog Stand

1. 1,600 people per day pass stand; 1 of 4 buy

2. buy=conversion rate=25%

3. Cogs=$.25

4. Avg. customer buys 2 tube steaks @$1 each

5. Cost of tube steaks - $.25 each

6. Customer buys 1x/day

7. Fixed Costs - $36K Tony salary; $12K depreciation ((he bought the stand for $60,000/5=12,000) So the total fixed cost is $48,000)

8. Business Days 250 per year

9. Sales (Revenue) is $200,000

10. Variable Cost is $50,000

11. Fix Cost is $48,000

Now we need to calculate Tonys Break-Even....For Tony, this is a number he wants to know every day. Calculating the Break-Even for the Hot Dog Stand BE = FC/GM%

Yearly Break Even = ________ FC = _______ GM% = _______%

Monthly Break-Even = ___________ FC = _______ GM% =________%

Daily Break Even = _____________ FC = _______ GM % =_______ %

How did you calculate the breakeven?

What does this actually mean? Tony has to sell ___ hot dogs per day just to stay in business, anything after that is profit!

What is Tonys Net Profit (year) (This is the stuff you want)?