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Question: Tracy and Tina are thinking of opening a food truck and operating in Minneapolis. Both women currently have jobs but are looking for
Question: Tracy and Tina are thinking of opening a food truck and operating in Minneapolis. Both women currently have jobs but are looking for a change of career. However, since they each earn $44,000/year, they would like to figure out how much product they would need to sell to be able to draw an equivalent salary from the food truck. They have done some market analysis (eating at many food trucks the previous summer) and have determined that their product will sell for $8.50 per unit and will cost them $4.50 per unit for ingredients and variable costs like cooking fuel. They have one fixed cost, which is the lease on the truck that is $12,000 per year (They must rent the truck for the entire year whether they use it for the entire 12 months or not). The season for food trucks runs from the beginning of April to the end of October on weekdays. How many units would they need to sell per day to generate the desired income?
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