Question
If Cat & Joe wish to make $50,000 profit for the year (after tax), how much sales (dollars) of pulled pork sandwiches must the Pig
If Cat & Joe wish to make $50,000 profit for the year (after tax), how much sales (dollars) of pulled pork sandwiches must the Pig Rig earn each day? Assume all days are in Kamloops and the sandwiches are sold at its regular price. T
he sandwich came in a combo with coleslaw, baked beans, and French fries and was priced at $20.30!
Variable costs were 60% of the companys revenues, which includes labor costs for Cat and Joe. Fixed costs included items such as gas for the generator, maintenance, business licenses, and truck depreciation. These costs totaled $120,000 per year.
The operational year for the food truck was 180 days.
Corporate income tax rates for small businesses in British Columbia were approximately 20% around that time.
On a typical day, Cat and Joe served between 75 and 125 patrons, with an average of 100.
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