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At This Time, Weiner's Hot Dog Stand Sells Hot Dogs

Question 29

Multiple Choice

At this time, Weiner's Hot Dog Stand sells hot dogs for $2.50 each. The variable cost per hot dog is $1.75 and fixed costs per month are $1,800. Weiner is considering some changes. If Weiner increases his selling price to $2.75 per hot dog, and reduce his variable cost per hot dog to $1.15, what level of fixed cost per month would reduce his break-even point in units by 50% from what it is now?


A) $900
B) $1,050
C) $1,450
D) $1,920
E) $2,400

Correct Answer:

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