Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

THOUGHTS ON THIS BUSINESS PLAN?? LOOK AT THE NUMBERS, FIXED COST AND VARIABLE COST AND BREAKEVEN Business Plan The French Fry Truck 2022 Top Three

THOUGHTS ON THIS BUSINESS PLAN?? LOOK AT THE NUMBERS, FIXED COST AND VARIABLE COST AND BREAKEVEN

Business Plan

The French Fry Truck

2022

Top Three Focus Areas:

  1. Purchase a french fry truck, supplies and prep for opening
    1. Purchase truck
    2. Set truck up to include electrical, gas and construction
    3. Complete inspections
    4. purchase supplies
    5. Purchase insurance
    6. Set up gas account
  2. Rent our Fair spaces for 12 months
    1. Reach out to fairs in Maine for the summer
    2. Reach out to fairs in Flordia in the winter
    3. Secure at least 48 weeks
  3. Hire staff
    1. Hire full time seasonal staff for Maine
    2. Hire full time seasonal staff for Florida
  4. Create an Income Statment for 12 months with Breakeven amount

Fixed annual Cost:

Truck: 55,000

Inspections: $2,000

Addional worker ( Electrical, gas and construction): $10,000

Insurance: $14,400

Rental Spaces: $48,000

Fixed: $129,400 for the first year

Variable costs:

Supplies ( ex: potatoes, seasoning and plastic wear) : $4.50 per order

Labor: $18 per hour x 40 hours per week x 48 weeks= 34,560

Gas: $10,000

Selling each unit for: $12

Income Statement Approach:

Sales revenue:

$12 per box x 70 per day x 336 days= $282,240

Less: Variable Cost:

$105,840 ( cost to make and supplies )

$34,560 ( Employee cost )

$10,000 ( gas )

Total Variable:

$150,400

Less Fixed Expense:

$129,400

Total Profit: $2440

We have to sell a minimum of 70 per day for 336 days to break even ( just over even )

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting An IFRS Standards Approach

Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah

4th Edition

9789814821278, 9814821276

More Books

Students also viewed these Accounting questions

Question

Write any of the first 19 Programming Exercises in ML.

Answered: 1 week ago