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Raiden runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is $ 600 Raidens contribution margin is $1.50 per hot dog sold. She has recently added individual servings of potato chips to her product offering. Each bag of potato chips has a contribution margin of $ 0.75 per bag. Raiden sells 55 bags of potato chips for every 10 hot dogs.

1. What is Raiden's weighted-average contribution margin per unit?

2.How many total units much Raiden sell in a month to earn a target monthly profit of $1,200?

3 Of the total units needed to earn $1,200 of profit, how many are hot dogs and how many are bags of potato chips?

1

	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 ? ?			?

2.

First identify the formula, then compute the breakeven point in units. (Enter decimals to two places, ".XX". Round your answer to the nearest unit.)

(		+		)	/		=	Breakeven units
(		+		)	/		=

3. Of the total units needed to earn

$ 1 comma 200$1,200

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

First identify the formula, then compute the breakeven unit per item.

		x (		/		) =	Breakeven unit per item
Hot dog		x (		/		) =	?
Potato chips		x (		/		) =	?
Total units							?

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