If Cat and Joe wish to make a $100,000 profit for the year (after tax), how many pulled pork sandwiches must the Pig Rig sell each day?
- Fixed costs included items such as gas for the generator, maintenance, business licenses, and truck depreciation. These costs totaled $10,000 per year. The operational year for the food truck was 180 days. Corporate income tax rates for small businesses in British Columbia were approximately 20% around that time.
- The company had variable costs, which included the cost of the food, clamshell packaging, and variable overhead. Variable costs were 40% of the company's revenues. There was no labor cost as neither Joe nor Cat drew a wage or salary.
- On a typical day, Cat and Joe served between 75 and 125 patrons, with an average of 100.
- "Ripped Pig" pulled pork sandwich, coleslaw, baked beans, and French fries for $12.