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A. Let’s see how this might work for a hot dog vendor at the baseball park.
The vendor’s fixed costs include:
$25 license
$100 for equipment rental
Variable costs are estimated to be $50 for twelve dozen (or 144) hot dogs and buns, as well as condiments.
The hot dogs will sell for $1.50 each.
How many hot dogs will the vendor need to sell to break even?

• Break-even can also be expressed in dollars.

How many hot dogs will the vendor need to sell to break even in $$ ?

Respuesta :

He will need to sell 117 hotdogs
If you add up the expenses of the vendors cost you’ll get 175 then divide that by the cost of each hotdog which is 1.50 to get 116.666666 and round up to 117