Question

please use Excel to answer each question

Questions 1-3 Biff Titan, a student at UWO, plans to open a hot dog stand inside UWO's football stadium during home games. There are eight (8) home games scheduled for the upcoming season. He must pay the UWO athletic department a vendor's fee of $1,600 for the season. The stand and other equipment will cost him $2,850 for the season. Each hot dog will cost him $0.61. He has talked to friends at other universities who sell hot dogs at games. Based on their information and the athletic department's forecast that each game will sell out, he anticipates that he will sell approximately 1,075 hot dogs during each game. 1) What will he need to charge per hot dog to break even for the season? Answer to 2 decimal places. Include the excel table you used to answer this (copy and paste it into the word document) and note any formulas you created (5 pts) wanita UWO has made the playoffs and will be adding one more game. Biff is going to sell premium hot dogs (instead of regular) that cost $0.96 each and sell them for $3.25 each. The vendor fee for that game will only be $450, and he will need to buy $225 in supplies for that game only. 2) How many hot dogs will he need to sell at that game to break even for that game? Round to O decimal places. Include the excel table you used to answer this (copy and paste it into the word document) and note any formulas you created. (5 pts) Next season, hot dog costs are going up by 21% over last season, so Biff is going to charge $1.75 per regular hot dog. He will need to spend $1,950 for equipment and stand updates next season, not $2,850. In addition, he is busy, so he is hiring his friend, Dexter St. Jock, to help him at $58/game. Assume the number of games goes up by 1 from last season, hot dog sales increase 8% over the last season, and don't worry about playoffs 3) What vendor fee should Biff negotiate to make a profit of $6,250 next season? Answer to 0 decimal places. Include the excel table you used to answer this (copy and paste it into the word document) and note any formulas you created. (5 pts)

Answer 1

Part 1

Vendor fees	1,600
Equipment cost	2,850
Total fixed costs	4,450
Divided by: units sold (1075*8)	8,600
Fixed costs per unit	0.52
Add: Variable costs per unit	0.61
Break-even price	1.13

Part 2

Vendor fees	450
Supplies cost	225
Total fixed costs	675
Divided by: contribution margin per unit (3.25-0.96)	2.29
Breakeven units	295

Part 3

Units sold [10 Games] (1075*(1+8%)*10)	11,610
Variable cost per unit (0.61*(1+21%))	0.7381
Sales revenue (11610*1.75)	20,317.50
Less: profit	6,250.00
Total costs	14,067.50
Less:
Variable costs (11610*0.7381)	8,569.34
Equipment cost	1,950.00
Friend's salary expense (58*10)	580.00
Vendor fees	2,968