Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech's football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor's fee of $3,000 for the season. Her stand and other equipment will cost her $4,500 for the season. She estimates that each hot dog she sells will cost her $0.35. She has talked to friends at other universities who sell hot dogs at games. Based on their information and the athletic department's forecast that each game will sell out, she anticipates that she will sell approximately 2,000 hot dogs during each game. What price should she charge for a hot dog in order to break even (type number only, two decimals, no text or dollar symbol)?

Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech's football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor's fee of $3,000 for the season. Her stand and other equipment will cost her $4,500 for the season. She estimates that each hot dog she sells will cost her $0.35. She has talked to friends at other universities who sell hot dogs at games. Based on their information and the athletic department's forecast that each game will sell out, she anticipates that she will sell approximately 2,000 hot dogs during each game. What price should she charge for a hot dog in order to break even (type number only, two decimals, no text or dollar symbol)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The Audubon Society at Enormous State University (ESU) is planning its annual fund-raising…

A: Here the revenue comes from the selling of pasta and will depend on number of students. Costs…

Q: Calculate the accounting rate of return of the new sign. Accounting rate of return %

A: Accounting Rate of Return The accounting rate of return (ARR) formula is helpful in determining the…

Q: Edna is a 62-year-old widow living in Quebec. She meets with Yolanda, her insurance agent. Edna…

A: OAS and CPP are two important Canadian programs that assist seniors: Starting at the age of 65, OAS…

Q: Jude is arranging for a party to be held in the students' union. The use of the hall will be free…

Q: Mary is considering opening a hobby and craft store. Mary plans to operate the business for six…

A: Present value refers to the current value of an amount that is receivable in the future.

Q: How can his revenue and expenses match? Discuss in a group several ways that Edward's accountants…

A: How revenue and expenses match Edwards foster wil book the expense in the period in which…

Q: Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for…

A: Profit is the amount of money earned by the entity. It is determined by deducting the expenses from…

Q: Sam Jones, Mary Adams, and Larry Brown have been talking about starting their own business for…

A: In summary, Joe needs a diversified approach to secure the needed funds, leveraging loans, potential…

Q: Hardyke Group operates a local after-school recreation and activities program. The Education…

A: Assigning costs to cost items, which often comprise a corporation's goods, services, and other…

Q: 4. Record the depreciation expense and any other adjusting entries related to the vehicle on…

A: The expected decline in the value of a fixed asset over the course of its use is called…

Q: Desmond currently is a brewmaster for Copper Creek Brewery. He enjoys his job, but is Intrigued by…

A: Incremental profit refers to the additional profit that a company generates from a specific decision…

Q: Hardyke Group operates a local after-school recreation and activities program. The Education…

A: Assigning costs to cost items, which often comprise a corporation's goods, services, and other…

Q: Mary is considering opening a hobby and craft store. Mary plans to operate the business for six…

A: Present value factor for the net annual cash flows = Present value of annuity factor (6%, 6 years)

Q: Antonio would like to replace his gold clubs with a custom-measure set. A local sporting goods…

A: Financing is a technique to arrange funds for extension the business or start new projects. There…

Q: A) What price should she charge for a chopped beef brisket sandwich in order to break even for the…

A: Break-even point: A point of sale where the total revenue generated by the company is equal to the…

Q: The average growth rate needs to be 8.75 percent.

A: The rule of 70 determines the approximate time taken for an amount to double given the interest rate…

Q: Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies.…

A: Journal Entries are the records of the transactions entered into by the organization during the…

Q: Rebecca is moving away from New York City for her new job, so she must buy a car rather than rely on…

A: Estimate at completing shows the total cost of an instrument till the time of completion. It is…

Q: Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for…

A: Opportunity cost is the cost of the next best alternative that was forgone when a choice was made.…

Q: Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for…

A: Profit is the amount of money earned by the entity. It is determined by deducting the expenses from…

Q: 2-17. Finn Fixes is a new charity that repairs donated cars for use by unemployed job seekers. Finn…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: Does Susan have an ethical obligation to disclose the information about Jerry to the city planning…

A: Ethical obligation means certain course of action that is required to be followed by an individual.…

Q: Assume you wrote up a proposal requesting $5000 for charity. The money would be used to buy food…

A: A company/ corporation cannot work in vaccum, rather it has to work within the society and thus…

Question

Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech's football stadium during
home games. There are seven home games scheduled for the upcoming season. She must pay the
Tech athletic department a vendor's fee of $3,000 for the season. Her stand and other equipment
will cost her $4,500 for the season. She estimates that each hot dog she sells will cost her $0.35. She
has talked to friends at other universities who sell hot dogs at games. Based on their information and
the athletic department's forecast that each game will sell out, she anticipates that she will sell
approximately 2,000 hot dogs during each game. What price should she charge for a hot dog in
order to break even (type number only, two decimals, no text or dollar symbol)?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. Ignore income taxes in this problem.) The data pertaining to her investment opportunity are: Cost of equipment $ 175,000 Working capital needed $ 185,000 Annual cash inflow from sales $ 190,000 Annual cash outflow for operating costs $ 145,000 Salvage value of equipment $ 20,000 Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the annual NET savings?
Alexa bought a store two years ago for $250,000. She leased it out at $4,000 a month. Now she is considering the option to cancel the lease and use the location as a salon. About two months ago, Alexa changed the flooring of the store at a cost of $20,000. She estimates that the machinery for the salon will cost $150,000. Alexa expects the net operating cash flows to be $35,000 annually for 5 years, after which she plans to scrap the remaining inventory and retire. If she opens up this new salon, the sales from her other salon would drop by 10%. Alexa wants a return of 9% on his investment or else she would not go ahead with his plans. The $4000 leasing revenue would be included in the calculation of operating cash flows as it the opportunity cost. True False
Charlotte has just finished her MBA and started a career in banking investment, she wanted to have a new car as soon as possible. The price of the car is $ 28,320. She must also have clothes and coats for the job which costs $ 3,248. The salary for his job this year is $ 42,000 and next year it will be increasing to $ 46,000. The cost of living this year is $ 34,000. Charlotte plans to make the difference between income and expenditure for consumption by borrowing. Interest on the loan is 15% per year. Charlotte wants to pay the loan and interest within a year. How much money is left for next year that Charlotte can spend (consume)?
Marcus is considering a purchase of a new Toyota that costs $20,000 at a local dealership. Marcus estimates the annual cost of maintenance, registration, insurance, and gas to be about $1,500. After extensive internet research, Marcus estimates that he can sell his Toyota in three years for $10,000. What is Marcus's estimated cost of owning and driving the car for three years? $20,000 3 x $1,500+$20,000-$24,500 3x $1,500+$20,000 $10,000 $14,500 $20,000 $10,000 = $10,000
Monique has a flock of six chickens in her backyard that she initially bought for $6 each. Theflock currently lays 20 eggs per week, which Monique and her family consume at home, andher current cost of feed is $2 per week. Monique has a job that pays $8/hour with flexiblehours, but she is thinking of selling her chickens’ eggs to earn extra income. To start sellingeggs, she would need to increase production to 30 eggs per week. She can do this by increasingthe chickens’ feed to $3 per week and taking an hour off work each week to devote to chickenrearing. If the market price of her farm-fresh eggs is $1 per egg, what would be Monique’sweekly economic profits from selling her chickens’ eggs? (Select one.)(a) −$9: This is her revenue minus her accounting cost.(b) −$1: This is her revenue minus her production cost.(c) $0: Eggs are a constant-cost market so producers must earn 0 profits.(d) $1: This is her revenue minus her economic cost.(e) $7: This is her revenue minus her accounting…
Assume you wrote up a proposal requesting $5000 for charity. The money would be used to buy food that volunteers (employees from the company) would distribute to the homeless on Saturday. The proposal is approved and you receive the money. However, the CEO comes to you and asks, "What will be the return on the investment?" How would you reply?
A volunteer has been asked to drop off some supplies at a facility housing victims of a hurricane evacuation. The volunteer would like to bring at least 240 bottles of water, 117 first aid kits, and 83 security blankets on his visit. The relief organization has a standing agreement with two companies that provide victim packages. Company A can provide packages of 21 water bottles, 9 first aid kits, and 7 security blankets at a cost of $2. Company B can provide packages of 8 water bottles, 5 first aid kits, and 3 security blankets at a cost of $1.50. How many of each package should the volunteer pick up to minimize the cost? What amount does the relief organization pay? Answer Enter the value in the first box and the ordered pair in the second box. Minimum Cost of S Minimum Cost at Tables Keypad Keyboard Shortcuts
Last week Santiago found a new pair of red Nike Air Soles in the parking lot. He had just paid $120 to buy a pair of blue Nike Air Soles a few days earlier. A friend offers $80 to buy the pair of red Air Soles. Santiago says no and decides to keep both pairs for himself. The opportunity cost of this decision is how much
ary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. Ignore income taxes in this problem.) The data pertaining to her investment opportunity are: Cost of equipment $ 175,000 Working capital needed $ 185,000 Annual cash inflow from sales $ 190,000 Annual cash outflow for operating costs $ 145,000 Salvage value of equipment $ 20,000 Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the present value factor you will use for the net annual cash flows?
William and Miller Brown run a real estate brokerage firm. They have just moved into a new building and want to add some outdoor digital signage to advertise the firm's services. The sign they are considering has two display areas that can display two different images at the same time and costs $104,800. It is expected to have a useful life of 4 years. In an effort to recoup the cost of the sign, William and Miller will rent one display panel to other tenants in the building for $39,646 a year. Electricity to power the sign is expected to be $870 per year. (a) Calculate the annual net operating income generated by the new sign. Annual net operating income 2$ eTextbook and Media