Congratulations! You just won your state lottery and will be receiving a check for $1 million. You have always wanted to own your own business and have noticed the increase in the number of food trucks in your local area.

A new food truck with a kitchen and related equipment costs about $100,000. Other fixed costs include salaries, gas for the truck, and license fees and are estimated to be about $50,000 per year. You decide to offer traditional Mediterranean cuisine. Variable costs include food and beverages estimated at $6 per platter (meat, rice, vegetable, and pita bread). Meals will be priced at $10.

Calculate the break-even for your food truck business.

After reviewing your break-even, what changes would you consider? Is this how you want to spend your lottery winnings? (AACSB: Written and Oral Communication;

Reflective Thinking)? P-968