Scenario 20.1
Use the following to answer the questions.
Concession Supply sells hotdogs,buns,and nacho ingredients to several major league ballparks across the country.Currently,Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200,Selling price = $16,and Variable costs = $6.
-Refer to Scenario 20.1.If Concession Supply wanted to make a profit of $800 on each case,it would need to sell ____ cases.
A)150
B)300
C)100
D)75
E)200

Question

Quizplus · Accepted Answer

To find the number of cases needed to achieve a profit of $800, use the formula: Profit = (Selling Price - Variable Cost) * Quantity - Fixed Costs. Plugging in the values: $800 = ($16 - $6) * Quantity - $1,200. Solving for Quantity gives 200 cases.

Scenario 20.1 Use the Following to Answer the Questions