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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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.