A food stand in Manhattan charges $7.00 for a hotdog. It costs the food stand $2.00 in food, labor, and packaging to make each hotdog.

It costs the owner $15,000/year to rent a permit to operate in the city.

The stand expects to sell 3,000 hotdogs this year.

What is the hotdog stand’s contribution per hotdog? Write out your calculations. 

How many hotdogs does the stand need to sell in a year to break even on its licensing fee? 

If the hotdog stand averages sales of 80 hotdogs per week, what will their net profit be? Assume 52 weeks in a year. 

Answer rating: 100% (QA)

To calculate the hotdog stands contribution per hotdog we need to subtract the cost of making each h... View the full answer