male Handout.doc eat Tamale Handout.doc (86.5 KB) Alternative 1- Food Truck After experiencing such great success with their food cart, Nathan and Cody are considering purchasing a food truck to serve other communities. This would allow the Great Tamate, GT, to reach even more customers in different geographic locations There would be an increae in the rolling price per plate. There will also be an increase in the fixed costs of $30,000 for advertising to inform the public of this change (this amount is already included below under Food Truck data). The financial information In prosented below for this wternative as well as the original data. Assume 11,125 plates are sold for the food cart and 45,625 platos are nold for the food truck. Sales Variable costs Contribution margin Fixed costs Income before taxes income taxes (32% rato) Net income Food Cart Food Truck $ 217,675.00 $365,000.00 46,687 50 103.437.50 171,187 50 261.562,50 90,000.00 147,500.00 81,187.50 114,062.50 25.960.00 36,500.00 $ 55,207 50 $ 77,562.50 Required: 1) Compute the company's contribution margin under both sonnanios, ir GT decides to remain a regular food cart and if they decide to become a food truck. Comote 7.) Assume that the company expects sales to increase by 20% next year. There will be no change in plate price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as shown above with columns for each of the two types (assume 32% tax rate, and that any loss before taxes yields a 32% tax savings) I 8.) If salos greatly increase, which typo (food cart or truck) would experience a greator increase in profit? What if sales declined which product would experience a greater loss or roduction in Income? Explain why. How does your calculation from (4) support your point? 9.) Thinking about sales, is there any day of the week or time of day when greater sales are expected? Which type is more sensitive to this occurrence? Which type is less sensitive to this occurrence? Which type is more advantageous and why? Is there anything else the company can do to manage the decline in sales that come with certain days and times