Hooper's Hot Dog Stand has had the following average results for the past several months: Its selling price per hot dog is $4. Total monthly sales revenues have been $8,000, variable product costs have been $3,000 per month, variable period costs have been $500 per month, and fixed costs have been at $2,250 per month. Hooper's expects to have a $450 per month increase in fixed period costs beginning next month.
a. What was the operating income for the past several months with the given information?
b. What is Hooper's current break-even point?
c. How will this cost increase affect Hooper's break-even point?

Question

Quizplus · Accepted Answer

The Answer of Hooper's Hot Dog Stand has had the following average results for the past several months: Its selling price per hot dog is $4. Total monthly sales revenues have been $8,000, variable product costs have been $3,000 per month, variable period costs have been $500 per month, and fixed costs have been at $2,250 per month. Hooper's expects to have a $450 per month increase in fixed period costs beginning next month.
a. What was the operating income for the past several months with the given information?
b. What is Hooper's current break-even point?
c. How will this cost increase affect Hooper's break-even point?

Hooper's Hot Dog Stand Has Had the Following Average Results