You will have the following costs: monthly rent for the truck of 1300 dollars, insurance and licensing fees, which is another 500 dollars per month, and estimated truck operating costs of 700 dollars. Based on your research, you think consumers will be willing to pay 3 dollars for a gourmet donut. The cost of ingredients for each donut is 90 cents. a) Using this information, how many donuts do you need to sell per month to break even?

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To calculate the breakeven point we need to consider the total fixed co... View the full answer