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You have purchased a food truck for $50,000 and plan to make and sell Vietnamese banh mi sandwiches. O&M costs are $10,000/year. In addition, food
You have purchased a food truck for $50,000 and plan to make and sell Vietnamese banh mi sandwiches. O&M costs are $10,000/year. In addition, food costs are estimated to be $20,000/year to prepare the 10,000 sandwiches that you anticipate selling annually. You want to make $1 on the cost of food for every sandwich sold. Using a life of 10 years, a salvage value of $10,000, and an ROR of 8%, at what price should you sell each sandwich (round to the higher whole dollar) to cover your costs and ensure you earn your ROR. Use AW to conduct your analysis
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