Scenario 12.1
Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6.
-Refer to Scenario 12.1. If Concession Supply wanted to make a profit of $800 on each case, it would need to sell ____ cases.

Question

Quizplus · Accepted Answer

To find the number of cases needed to make a profit of $800, use the formula: Profit = (Selling price - Variable cost) * Quantity - Fixed costs. Solving for Quantity: $800 = ($16 - $6) * Quantity - $1,200. This simplifies to $800 = $10 * Quantity - $1,200. Solving for Quantity gives 200 cases.

Scenario 12.1 Use the Following to Answer the Questions