We consider starting an outdoor restaurant operating in a kiosk to sell hamburgers at college sporting events. 1.The material cost of $ 0.60 per hamburger 2. To encourage employees to work hard, the business will pay them $ 0.50 per hamburger sold rather than paying them by the hour. 3.The university charges a concession fee of $600per game. 4. The grill rental fee is $100 per game 5. Different supplies (salt, pepper,etc) are estimated at $3 per game 6.The selling price for the hamburgers is $3 each

SP = $3.00, VC=$ 1.10 ($0.60 materials + $0.50 labor), CM= (SP VC) CM=$1.90 ($3 selling price per unit less $1.10 variable cost per unit), FC=$ 703($600 concession fee+$100 equipment rental+$3 dif supplies) At the breakeven point ,profit is zero. Breakeven , then, is represented as

SP*Q - VC*Q - FC =0 or (FC+0)/CM= Q

$3.00*Q - $1.10*Q - $703 = $0 ($3.00 - $1.10) * Q = $703 $1.90 * Q = $ 703

Q= 370