Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 35 2 pts Starting a small business in the US isn't cheap - the average starting cost is $30,000, with many small businesses costing

image text in transcribed

Question 35 2 pts Starting a small business in the US isn't cheap - the average starting cost is $30,000, with many small businesses costing much more. One popular small business to start is a food truck, since the start-up costs for a food truck are much smaller than that of a restaurant. However, starting a food truck can still cost a lot of money (between $30,000 and $100,000), and there are maintenance and operation costs to consider as well. Despite these costs, food trucks can sometimes be quite lucrative, which helps to explain why the industry is growing so rapidly. Food truck costs: Food truck (one-time): $65,000 Website, point-of-sale system, menu board, etc. (one-time): $3,000 Pots, pans, bowls, tongs, etc. (one-time): $2,000 Permits, parking, gas, insurance, and maintenance (monthly): $2,500 Internet (monthly): $100 Food cost (monthly): $5 per meal Foregone salary from working in a restaurant instead (monthly): $2,600 For the questions below, assume that you have committed to starting a food truck business and to operating the food truck for 20 days this month. What are the fixed costs of running a food truck? 75200 70000 072500 075100

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