1. Congratulations! You you just decided to become the proud owner of a new food truck offering traditional Mediterranean cuisine. Kitchen and related equipment costs are $100,000. Other fixed costs include salaries, gas for the truck, and license fees and are estimated to be about $50,000 per year. Variable costs include food and beverages estimated at $6 per platter (meat, rice, vegetable, and pita bread). Meals will be priced at $10. (4 pts)

   • Calculate the break-even for your food truck business. Provide the break-even dollar amount as well as the number of meals that need to be sold to break-even.

   • You would like your target profit for the year to be $100,000. How many meals need to be sold to achieve this target profit?

   • After reviewing your break-even, what changes would you consider?

   • If you changed the price per meal to use Cost-Plus pricing with a 60% mark up, how much will be charged per meal? Assume fixed costs are sunk costs and the mark up is on the variable cost only.