Deja runs her own hot dog stand on the U of A campus. The monthly cost of
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Deja runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is \($300\). Deja’s contribution margin is \($1.50\) per hot dog sold. She has recently added individual servings of potato chips to her product offering. Each bag of potato chips has a contribution margin of \($0.75\) per bag. Deja sells 5 bags of potato chips for every 10 hot dogs.
1. What is Deja’s weighted-average contribution margin per unit?
2. How many total units must Deja sell in a month to earn a target monthly profit of \($900\)?
3. Of the total units needed to earn \($900\) of profit, how many are hot dogs and how many are bags of potato chips?
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