A student organization has been given permission to operate a burrito stand during the upcoming homecoming weekend. The stand will be located just outside the football stadium, making it accessible during the ball game. The location is also convenient for visitors as they tour the campus at other times during the weekend. An estimated 5,500 visitors will be on campus, in addition to the campus population of 2,500.

Each burrito requires:

1 - tortilla

2 oz. meat

6 oz. Rice

8 oz. beans

2 oz. cheese

2 oz. salsa

Tortillas cost $4.00 per 20 count bag; meat cost $3.00 per lb, rice cost $12 for a 25 lb bag; Refried beans cost $3.60 for a 64 oz can.; cheese costs $15.00 per 5-lb. package; salsa costs $2.40 for 40 oz. jar. Club members will make the burritos and staff the stand on a volunteer basis. The university requires each vendor to pay a $25.00 permit fee. You also need to purchase a canopy for $150, a small grill for $250, and other supplies for $100. Your club plans to donate the profits from the burrito sales to a local childrens hospital.

1)Anticipate selling each burrito for $6.00. Create and show a properly formatted basic Income Statement/P & L. What is your net profit margin as a percentage?

2)Calculate your Break- Even point based on your expenses required for the event? Be sure to write the formula and show your calculations