Question
On a typical day, how many Ripped Pig sandwiches must be sold in order to break even? (Please show all work) Given Information: - On
On a typical day, how many Ripped Pig sandwiches must be sold in order to break even?
(Please show all work)
Given Information:
- On a typical day, Cat and Joe served between 75 and 125 patrons, with an average of 100.
- Ripped Pig pulled pork sandwich, coleslaw, baked beans, and French fries for $12.
- The company had variable costs, which included the cost of the food, clamshell packaging, and variable overhead. Variable costs were 40% of the companys revenues. There was no labor cost as neither Joe nor Cat drew a wage or salary.
- 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started