Assume that you would start a business of having a hot dog truck at the KPU Surrey campus.

a. Identify and list your fixed costs and then identify your monthly fixed cost to run a hot dog stand. (Provide realistic cost for each item) for running a hot dog truck) 

b. Identify and list your variable costs to sell a hot dog. (Provide realistic cost for each item) 

c. Identify your pricing strategy to sell dot dogs and explain the reason for selecting this strategy. 

d. Decide on a selling price for your hot dog (consider you have only one size) 

e. Based on your selling price, what is your contribution? What is the markup percentage? 

f. How many hot dogs do you need to sell to make a profit per month? What is your break-even revenue per month? (Do a Break-even analysis) 

g. What should be your daily average break-even sales quantity (assume you are open 20 days per month) 

h. What are things you could do to lower your break-even sales quantity?

i. What are things you could do to ensure you meet your break-even point as quickly as possible?

j. Identify some of your pull strategies in promoting your product. 

k. What type of promotions would you do to improve sales?

 

Answer rating: 100% (QA)

a Fixed costs include the cost of the truck as well as the cost of other types of gear such as gas s... View the full answer