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please help 1-6 quick El Charro Food Truck is a Mexiean Food Truck that specialues in Mexican Street Food. The owner is considering introducing a
please help 1-6 quick
El Charro Food Truck is a Mexiean Food Truck that specialues in Mexican Street Food. The owner is considering introducing a poplar Mexican street food item. Elotes. Elotes is Spicy Gnilled Mexican Street Corn and they are considering it because a lot of people have becn asking for it. They decided to sell a family sioe Fletes bowt. Before they introduce their Elotes, they want to run some numbers to make sure it will be a good finaneial decision, As such, they asked you to help them with their numbers. Here are numbers they need belp with. Owner's Salary: $5,000 Com on the Cob: 52 Utilities: 51000 Cilantro: 50.40 Food Truek Rental: $8,000 Equipment 56,000 Miryonatise: 51,00 secret ingredient $3.00 wages paid per Elotes: $3.00 ECharos has decided to use Connecticut as a test market and tho average price of a large goomet Elotes in Connecticut is $25. There are also I millien Elotes sold in Connecticut. The company plans to use penetration pricing and as such decides to sell their Elotes for Ro\% of the avenge price of chocolate sold in Coanceticut. They also project that they will be able to sell the equivalent of 1% of the Hotes sold in Consosticut. Use the numbers peovided above to answer questions below. Make sure that you show all formulas and aiso show all your calculations since there will be points awarded for the formula and calculations. Formulas are attached to the back of this test. 1. The company wants you to calculate (20 points): a. How many Elotes boxes they need to sell to break even. b. The value (in dollan) of the number of Elotes boxes they necd to sell to break even. c. What proportion of market share will they be capturing if all they do is sell enough Elotes to break even? Use the numbers provided above to answer questions below. Make sure that you show all formulas and also show all your calculations since there will be points awarded for the formula and calculations. Formulas are attached to the back of this test. 1. The company wants you to calculate (20 points): a. How many Elotes boxes they need to sell to beeak even. b. The valoe (in dollars) of the number of Elotes boxes they need to sell to break cven. c. What peoportion of market share will they be capturing if all they do is sell enough Elotes to break even? 2. The company needs to know how much profit they will make. Using their projections of what they think they can sell, calculate their profits using the profit cquation. ( 20 points) 2 Create a Proforma Income Statement using the informusion peovided in the pages above. The Cost of Goods Sold in this scenario is equal to the Toeal Variable Cost. Focus on the quantities sold that are associated with the Profit equation caleulation in question 2 . Not the break ever quantities. (20 points) 3. A sales person from El Charros approached Walmart and asked thern to sell the Elotes in their retail stores. Er Charros offered to sell a Elotes to Walmat for a What will El Charros's trade margin be? b. What will Bl Charros't inde margis % be? c. What will Walmart's trade margin be? d. What will Walmart's trado margin % be? 5. ECharros decided that they wanted to change ibeir margie perecnt to 45\%. How much should they sell their Elotes to Walmarr? (10 points) 6. If EI Chamos rectivet 45% maryins for each Etotes, and Walmart still sells the Elotes for $20, whas will Walmart's new trade margin $3 be? (10 points) Step by Step Solution
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