You have started a small hotdog stand and want to use the concepts of CVP to manage the stand.
Your stand will be used to sell hotdogs in front of office buildings during the lunch hour in
Columbus, Ohio. This is a seasonal business and most of the activity will occur in the summer
months.
The following are your estimated costs and information for the season:
Depreciation on the stand $1,750
General Insurance $550
Gas Cost $575
License Fee $150
Operator's wage rate $8.00 per hour
Payroll taxes 12% of wages
Professional Fees $200
Estimated hours of operation 500 hours
Estimated hours of wages 700 hours
Mileage paid $780
Misc. Supplies $125
Other Costs $100
Hotdogs $ .45
Buns $ .15
Condiments $ .10
Paper Products $ .05
Selling Price $2.00
1. Make a list of all Fixed Costs and show the total. (14 points)
2. Make a list of all Variable Costs and show the total. (5 points)

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Status NEW Posted 23 Dec 2017 07:12 AM My Price 10.00

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