Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

The 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 $10,000 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Is A Powerful Management Tool

Authors: Fateh Bouchene

1st Edition

6204366548, 978-6204366548

More Books

Students also viewed these Accounting questions

Question

Discuss the history of human resource management (HRM).

Answered: 1 week ago