Barb Has a Hot-Dog Stand near the Ferry Terminal for Centre

Essay

Barb has a hot-dog stand near the ferry terminal for Centre Island. She pays $500 per month as rent and $3000 per month in wages for the hired help. Variable costs per hot dog come out to be $1.30 and she sells each hotdog for $3.00. In summer months, she is able to sell 4500 hotdogs in a month. To increase her sales, she added a free soda can which increased her variable costs by 20 cents. However, it increased her monthly sales to 5000 units. What is the change in her monthly net income due to these recent changes.