Annie RussellI, 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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?
||
Transcribed Image Text: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? ||
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