1) Harold operates a hot dog stand at the Jugulars football games. He pays $2000 per game to rent the space. Each hot dog (with bun and condiments) costs him $0.33, and he sells hot dogs for $3 each. If he sells 1200 hot dogs per game, how much profit will he make?

2) Harold (from problem 1) just read about a new hot dog cooker called the Super Dog. With this new cooker, Harold can make and sell twice as many hot dogs. The Super Dog will last only one football season (10 games). How much should Harold be willing to pay for this new machine?

3) Darrel's car just died. It won't start, and it will cost too much to repair. Therefore, Darrell is looking at new cars to purchase. He is considering three different vehicles. The Econo Mile costs $23,000 and gets 34 mpg. The Mid-Sizer costs $20,000 and gets 24 mpg. The Sport Off-road Vehicle costs $18,000 and gets 20 mpg. Darrell drives 10,000 miles per year.

a) If gas costs $3 per gallon, what is the best alternative for Darrell?
b) A new type of gas is being created. It is part oil and part tree bark. It costs half as much as gasoline and doubles the mpg of any vehicle. What is now the best alternative for Darrell?

Solution Preview

1) Harold operates a hot dog stand at the Jugulars football games. He pays $2000 per game to rent the space. Each hot dog (with bun and condiments) costs him $0.33, and he sells hot dogs for $3 each. If he sells 1200 hot dogs per game, how much profit will he make?

Profit of 1200 hotdogs per game = 2.67*1200 - 2000 = $1204

2) Harold (from problem 1) just read about a new hot dog cooker called the Super Dog. With this new cooker, Harold can make and sell twice as many hot dogs. The Super Dog will last only one football season (10 ...

Given the following data:
Selling price per unit 1.8
Variable production cost per unit 0.2
Fixed production cost 2,660
Sales commission per unit 0.2
Fixed selling expenses 1,260
The break-even point in dollars is:
2,800
5,040
3,920
3,420

What is a break-even point? If an organization's fixed costs increase, what happens to the break-even point? How can the break-even point be lowered? Why is the break-even analysis an important tool for management? When evaluating a company, how might this information be used?

Please help me solve the following problems..
The only formula I have is for VC and it's incorrect. I also don't know how to calculate depreciation without the # yrs being provided.
***** Please see attached document******
Problem 1
Case Accounting Break Even Unit Price Unit Variable Cost Fixed Costs Depreciat

Green plastics manufactures garden tool sets. Total fixed costs are estimated at $64,800. The variable cost per set is $2.95 and the selling price is $8.60. What is the break even point?
a.12,000 b.12,876 c.11,469 d.12,820 e. not given

What happens at a company's break-even point? How can you compute the break-even point for a company? How can a change in costs for a product or service be incorporated into the break-even calculation?

22 Assume a fixed cost for an investment in a piece of equipment of $15,000, a variable cost to produce each unit of product with the equipment at $10, and a selling price for the finished product of $25. Which of the following is the break-even in units that would have to be produced and sold for total revenue to equal total co

Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $187,800, how many dollars of revenue must the company generate in order to reach the break-even point?

To produce x number of units of glass vases cost C(x)=12x + 39. My revenue is R(x)=25x. Both cost and revenue and cost are in dollars. At what quantity would I break even; how many units will produce a profit of 130 dollars; what would be the profit gained from selling 250 units?

See attached file for full problem description.
The C-V-P Equation
The company sells lawnmowers for $895 each. The variable cost per lawnmower is $20. The company's monthly fixed costs are $84,500. Using the C-V-P equation, compute the amount of profit the company will have for a month in which the company sells 375 lawnmo