Question: Hamburger Bob company is a hamburger concession business operating at 5 stores. it sells burgers, with all the fixings for $7.5 each. Variable costs are $5.5 per burger, and fixed operating costs are $800,000 per year.
Assume that Hamburger Bob is currently operating at break-even sales and cannot increase the number of burgers sold, how much they should increase the price of each burger in order to achieve a target net income of $100,000.