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Use the following informationfor questions #1 - 3:

An accounting student runs a hotdogconcession at his college’s football games. After the first threegames the following limited information is available to assessperformance and make decisions about future operations:

Game #1 Game #2 Game #3 No. of Hotdogs Sold 300 290 250 Total Cost $ 1,100 $ 1,086 $ 1,030

#1.   Thestudent knows that total costs are comprised of a variablecomponent (meat, rolls, toppings, napkins) and a fixed component(afternoon rental of cooking cart, wages paid to self) and wouldlike to better understand those. Calculate the following using the“High-Low Method (show work).

a.) Variable cost per hotdog sold (unit cost).

b.) Total Variable cost for Game #1

c.) Total Fixed cost for a game.

#2. Although saleshave declined in the past couple of games, the student estimatesthat 280 hotdogs can be sold at Game #4 if he adjusts the pricethat he charges his customers for each hotdog.

      Calculate the following (show all work).

a.) Total Variable Cost for Game #4.

b.) Total Cost for Game #4

c.) What is the   “Contribution Margin” for Game # 4if the price that customers pay for a hotdog is $3.50 ?

d.) Was the student’s decision to set the price of hotdogs at$3.50 a good one?   Why ?

#3 If the actualnumber of hotdogs the student sells at Game #4 drops below what wassold in Game #3, then:

           Variable Costs per unit would (select one) -

           a.)Increase               b.)Decrease              c.) Remain the same

           and Fixed Costs per unit would (select one) -

            a.)Increase              b.)Decrease              c.) Remain the same