El Charro Food Truck is a Mexican Food Truck that specializes in Mexican Street Food. The owner is considering introducing a poplar Mexican street food item, Elotes. Elotes is Spicy Grilled Mexican Street Corn and they are considering it because a lot of people have been asking for it. They decided to sell afamily size Elotes bowl. Before they introduce their Elotes, they want to run some numbers to make sure it will be a good financial decision. As such, they asked you to help them with their numbers. Here are numbers they need help with.

Owners Salary: $5,000 Corn on the Cob: $2 Utilities: $1000 Cilantro: $0.40 Food Truck Rental: $4,000 Equipment: $5,000 Mayonnaise: $1.60 secret ingredient: $3.00 wages paid per Elotes: $3.00

El Charros has decided to use Connecticut as a test market and the average price of a large gourmet Elotes in Connecticut is $31.25. There are also 1 million Elotes sold in Connecticut. El Charros decides to sell this new Elotes for 80% of the average price of a Elotes sold in Connecticut. They also project that they will be able to sell the equivalent of 1% of the Elotes sold in Connecticut.

Create a Proforma Income Statement using the information provided in the pages above. The Cost of Goods Sold in this scenario is equal to the Total Variable Cost. Focus on the quantities sold that are associated with the Profit equation calculation in question 2. Not the break even quantities. (20 points)