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".)

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