Charlie’s Hotdog Stand Charlie’s Hotdog Stand Sells Hotdogs for $2.50 Each. the Variable

question 107

Multiple Choice

Charlie’s Hotdog Stand
Charlie’s Hotdog Stand sells hotdogs for $2.50 each. The variable costs per hotdog are $.50. Charlie’s fixed costs are currently $800 per month. Charlie is considering expanding his business to three hotdog stands which will increase fixed costs per month by $1200.

-If Charlie does expand his business to three stands,how many hotdogs will need to be sold per month in order to earn a target profit of $5000?

• A) 2500
• B) 3100
• C) 3500
• D) 2800