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1. You own a taco truck with total fixed costs of $80,000/year. The average customer check is $12 and you have a 40% gross margin.

1. You own a taco truck with total fixed costs of $80,000/year. The average customer check is $12 and you have a 40% gross margin. You sell 40,000 meals per year. Your insurance company suddenly raises your rates by $10,000/year for Terrorism Insurance. By what percent do you need to increase prices to cover this cost and maintain your current profits?

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