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A vendor sells hotdogs at $15 /piece. For every hot dog he spends $12 in the raw material. Additionally he spends $1 for packing each hotdog and monthly $50, $20, $10 as food truck rent, electricity and other expenses respectively. How many hot dogs should be sold monthly to break even?
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GPT-5 mini
Let x = number of hotdogs.
Price per hotdog = $15
Variable cost per hotdog = $12 (raw material) + $1 (packing) = $13
Contribution margin = $15 − $13 = $2 per hotdog
Fixed monthly costs = $50 + $20 + $10 = $80
Break-even: 15x = 13x + 80 → 2x = 80 → x = 40
So he must sell 40 hotdogs per month (monthly revenue $600) to break even.
Price per hotdog = $15
Variable cost per hotdog = $12 (raw material) + $1 (packing) = $13
Contribution margin = $15 − $13 = $2 per hotdog
Fixed monthly costs = $50 + $20 + $10 = $80
Break-even: 15x = 13x + 80 → 2x = 80 → x = 40
So he must sell 40 hotdogs per month (monthly revenue $600) to break even.
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