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 weightedaverage 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
weightedaverage contribution margin per unit? (Round the weightedaverage 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 

Weightedaverage contribution margin per unit 
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