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Matthew requently purchased a food truck from a local supplier. He is considering travelling to Harrisburg for a local festival to sell his tacos. Before Matthew purchases a permit to sell food at the festival, he wants to calculate how much volume he would need to sell for the trip to be profitable. Matthew met with his accountant to determine his food costs and what his tax liability would be, which in fact is a modest 20% tax on profits.
After reviewing the below information, calculate
Problem (A) What number of tacos Matthew must sell to break even.
Problem (B) What number of tacos Matthew must sell to make a profit before tax of $650. and
Problem (C) What number of tacos must Matthew sell to make an after tax profit of $400?
Selling price per taco 7.50Variable Cost Per Taco 2.25Total Fixed Cost 11300
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