Chapter 12: Case Analysis - Scenario
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What is the breakeven point in dollar sales volume?
$1,920
To break even, Concession Supply should sell ____ cases of hot dogs per day at Wrigley Field.
120
Scenario 12.1
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.
If Concession Supply increased its price by 10% and experienced only a 2% decrease in the demand for hotdogs, the demand would be
inelastic
