Reference no: EM133036520

1. A vendor prepares 100.00 hotdogs every day and sells at $20.00/piece. For each hot dog, he spends $12.00 in the raw material. Additionally he spends $1.00 for packing each hotdog and monthly $50.00, $20.00, $10.00 as food truck rent, electricity and other expenses respectively. Lost sale are taken as $1 per unhappy customer. Leftover hotdogs can be sold for $5.00/piece. On a particular day in June it rained heavily so the vendor was able to sell only 80.00 hot dogs. Determine the vendor's profit for that day? Assume there are 30 days in the month.

2. You run a school in Florida. Fixed monthly cost is $5,680.00 for rent and utilities, $5,766.00 is spent in salaries and $1,020.00 in insurance. Also every student adds up to $101.00 per month in stationary, food etc. You charge $650.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,245.00, salaries to $6,336.00 and insurance to $2,403.00 per month. Variable cost per student will increase up to $172.00 per month. However you can charge $1,110.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

3. A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $6.00 per slice, $1,145.00 as monthly rental and $325.00 monthly as insurance. They consider the cost of lost sales as $4.00 per item. They are able to sell any leftover sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $11.00/sandwich.

Today there was a party at nearby office so the demand for sandwiches rose to 216.00. How much profit did the restaurant earn today?

4. You run a nail salon. Fixed monthly cost is $5,939.00 for rent and utilities, $5,981.00 is spent in salaries and $1,388.00 in insurance. Also every customer requires approximately $2.00 in supplies. You charge $51.00 on average for each service.

You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,936.00, salaries to $6,828.00 and insurance to $2,393.00 per month. Cost of supplies will increase to $8.00 per service. However you can now charge $153.00 per service. At what point will you be indifferent between your current location and the new loaction?