Question
Up and Down Burgers sells its burgers for $1.50 per burger. In a slow year, Up and Down will sell 2 million hamburgers with
Up and Down Burgers sells its burgers for $1.50 per burger. In a slow year, Up and Down will sell 2 million hamburgers with a total cost of $3.5 million. In a good year, it will sell 4 million hamburgers at a total cost of $4.5 million. Depreciation is $1,000,000 per year. a. (4 points) What are the fixed costs of hamburger production? | b. (4 points) What are the variable costs? c. (4 points) How many burgers does Up and Down have to sell to reach accounting break- even.
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
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