Calculate the total fixed costs, the variable costs per taco sold, and the number of tacos needed to sell in order to turn a $2,000 profit according to the data given in class.

Total Fixed Costs: Add all fixed MONTHLY costs (break down any annual costs to monthly)

Total Variable Costs: Add all variable PER UNIT costs (break everything down to a cost per unit made or sold)

Taco Stand Case Study:

Rent for your Stand - $600/month

Meat for 12 tacos - $3.00/lb

Cheese for 20 tacos - $2.00/lb

Liability Insurance - $200/month

10 taco shells - $1.00

Lettuce for 25 tacos - $.50/head of lettuce

Sauce Packet for 1 taco - $.10/packet

Taco wrapper for 1,000 tacos - $20/one-thousand wrappers

Personal Health Insurance - $1,320/year

1. What are your fixed costs per month?
2. What are your variable costs per taco?
3. At a price of $1.50 per taco, how many tacos must you sell to make a $2,000 monthly profit??