Question

RachelRachel runs her own hot dog stand on the U of A campus. The monthly cost...

RachelRachel

runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is

$ 300

RachelRachel​'s

contribution margin is

$ 1.50

per hot dog sold. She has recently added individual servings of potatos chips to her product offering. Each bag of potato chips has a contribution margin of

$ 0.75

per bag.

Rachel

sells

5

bags of potato chips for every

10

hot dogs.

1.

 What is

RachelRachel​'s

​weighted-average contribution margin per​ unit?

2.

 How many total units much

Rachel

sell in a month to earn a target monthly profit of

$ 900​?

3.

 Of the total units needed to earn

$ 900

of​ profit, how many are hot dogs and how many are bags of potato​ chips?

1. What is

Rachel

​weighted-average contribution margin per​ unit? ​(Round the​ weighted-average contribution margin per unit to the nearest​ cent, ".XX".)

Hotdogs

Potato chips

Total in "basket"

Contribution margin per unit

Multiply by: Sales mix (number of units in "basket")

Contribution margin

Weighted-average contribution margin per unit
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