you own a hot dog cart downtown. you sell each hot dog for $2.50. you need to determine your monthly break…

you own a hot dog cart downtown. you sell each hot dog for $2.50. you need to determine your monthly break - even point.\n• monthly expenses: $600\n• cost to produce each hot dog: $1\nhow many hot dogs do you need to sell each month to break even?\na. 172\nb. 240\nc. 400\nd. 600

you own a hot dog cart downtown. you sell each hot dog for $2.50. you need to determine your monthly break - even point.\n• monthly expenses: $600\n• cost to produce each hot dog: $1\nhow many hot dogs do you need to sell each month to break even?\na. 172\nb. 240\nc. 400\nd. 600

Answer

Answer:

C. 400

Explanation:

Step1: Calculate profit per hot - dog

Profit per hot - dog = Selling price per hot - dog - Cost per hot - dog. $2.50−1=$1.50$

Step2: Calculate break - even quantity

Break - even quantity = Total monthly expenses / Profit per hot - dog. $600\div1.50 = 400$