1. What is the average cost of goods manufactured per taco if they produce 1,000 tacos in a 30 day period and 6 hours per day?

2. What is the average cost of goods manufactured per taco if they produce 10,000 tacos in a 30 day period and 6 hours per day?

3. What is the average cost of goods manufactured per taco if they produce 1,000,000 tacos in a 30 day period and 6 hours per day?

4. At a sale price of $2.50, how many tacos will Bit O'Victuals have to sell in a 30 day month to break even (assume sales=production)? For this question assume Bit O'Victuals has to cover their SG&A as well, not just manufacturing fixed costs, and that again only 6 hours of labor per day are needed.

Bit O' Victuals Monthly Total Cost if... 50 tacos/hr 150 tacos/hr Quantities Hours open per Day Days in this Month Sales Price (/taco) Given Facts & Numbers Cost per Month 6 hr/ day 30 days $2.50 / taco Variable Costs Tortilla Filling Pico/Salsa Tin Foil / napkin / etc. Labour Total Variable Cost $0.10 / taco $0.70 / taco $0.19 / taco $0.01 / taco $20 /hr Total VC per taco Fixed Costs Loan Payment Food License Equipment Commisary (prep 1 hr) Commisary (rent) Gas Total Fixed Cost $1,614 /month $500/yr $600 /yr $20/hr $500 /month $20/day Other Costs Insurance Advertising & Website Total SG&A Cost $1,400 /yr $150 /month Total Costs #Tacos Total Cost of production Total Cost of SG&A Cost of Production / taco Total Cost/ taco Income Statement Revenue COGS Margin SG&A Profit Profit / Taco