You have a food cart business that sells hotdogs for P25 each. The variable costs per hotdog are P10. Your fixed costs are currently P8,000 per month. You are considering expanding your business to three hotdog food carts which will increase fixed costs per month by P12,000.If you want to expand your business to three food carts, how many additional hotdogs will need to be sold per year in order to break-even?
You have a food cart business that sells hotdogs for P25 each. The variable costs per hotdog are P10. Your fixed costs are currently P8,000 per month. You are considering expanding your business to three hotdog food carts which will increase fixed costs per month by P12,000.If you want to expand your business to three food carts, how many additional hotdogs will need to be sold per year in order to break-even?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You have a food cart business that sells hotdogs for P25 each. The variable costs per hotdog are P10. Your fixed costs are currently P8,000 per month. You are considering expanding your business to three hotdog food carts which will increase fixed costs per month by P12,000.If you want to expand your business to three food carts, how many additional hotdogs will need to be sold per year in order to break-even?
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