I’ve already figured out how to do this problem, but If the club doubles it’s break even membership after a year, what will it’s profit be? ### Break-Even Price Calculation for Hot Dog Stand at Football Games**Scenario:**Annie Russell, a student at Tech, plans to operate a hot dog stand at Tech’s football stadium during the home games. There are seven home games scheduled for the upcoming season.**Costs:**- Vendor’s Fee: $3,000 for the season paid to the Tech athletic department.- Stand and Equipment Costs: $4,500 for the season.- Cost per Hot Dog: $0.35**Sales Estimate:**Based on her research and talking to friends at other universities, Annie estimates that she will sell approximately 2,000 hot dogs during each game.**Objective:**Determine the price Annie should charge for each hot dog in order to break even over the entire season.**Break-Even Calculation:**1. **Total Fixed Costs:** - Vendor’s Fee: $3,000 - Stand and Equipment Costs: $4,500 - **Total Fixed Costs:** $3,000 + $4,500 = $7,5002. **Total Variable Costs:** - Cost per Hot Dog: $0.35 - Total anticipated hot dogs sold over 7 games: 2,000 hot dogs/game * 7 games = 14,000 hot dogs - **Total Variable Costs:** 14,000 hot dogs * $0.35/hot dog = $4,9003. **Total Costs:** - Total Fixed Costs: $7,500 - Total Variable Costs: $4,900 - **Total Costs:** $7,500 + $4,900 = $12,4004. **Break-Even Price Calculation:** - Total hot dogs anticipated to be sold: 14,000 - Price per hot dog = Total Costs / Total anticipated hot dogs sold - Price per hot dog = $12,400 / 14,000 - **Break-Even Price:** $0.89**Required Price for Break-Even:** Annie should charge $0.89 for each hot dog to cover her costs and break even for the season.*Note: Please input the price as a number only, with two decimal places, and without any additional text or dollar symbol when responding to questions or forms regarding the price.*

Break-even point: It is the point at which the company has neither losses nor profits. Revenue is…

Answered: I’ve already figured out how to do this…

I’ve already figured out how to do this problem, but If the club doubles it’s break even membership after a year, what will it’s profit be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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