Use the following to answer questions 39-43. Tony Stark has decided his job is too stressful and he needs to take some time off from saving the world. After reading an article in the Wall Street Journal, Mr. Stark has decided that running a hot dog stand would be a perfect fit. Mr.Stark has designed and manufactured his own cart, using only scrap parts he had sitting around his workshop. He estimates he could sell the cart for dollar 5,000. Necessary licenses and fees will cost dollar 2,000. He plans to pay a sign spinner dollar 15/hour to stand on the street comer. 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 dollar 4 each. Use this information to answer the following questions. Which of the Mr.Stark's would be considered variable? The licenses and fees The sign spinner Hot dogs and hot dog buns Only the sign spinner and the hot dogs and buns All of the above are variable costs Assume he has not purchased hot dogs, buns or hired a sign spinner yet. At this point, how much are Mr. Stark s fixed costs? dollar 0 dollar 2,000 dollar 5,000 dollar 7,000 Tony Stark has decided his hot body is enough to drive business and is not going to employ a sign spinner or do any other advertising. How many hot-dogs will he need to sell to break even? Round up to the nearest whole number) 500 606 1, 750 2122 If he sells 1,000 "Ironman Dogs" what will be Tony Starks total costs? dollar 700 dollar 2000 dollar 2, 700 dollar 3,000 If he sells 4,000 Ironman Dogs, what is Tony Stark's degree of operating leverage? (Round to two decimal places) 1 1.18 2 2.76