Helen of Hamburgers by Helen would like to take advantage of the lucrative food truck restaurant service. Currently Helen operates a popular restaurant in the suburbs. The food truck would allow her business to expand into the city and take advantage of the lunch crowd. Hamburgers by Helen currently sells 1,500 hamburgers per month. Helen charges $4.50 per hamburger. Helen estimates that the food truck would allow for a 40% increase in revenue from food truck sales. She also expects a 20% increase in sales at her restaurant due to the exposure from the food truck. She expects to spend $25,000 on a used truck and an additional $15,000 to have it converted into a working food truck. The maintenance and fuel cost are estimated at $500 per month. The city requires a license that costs $1,000 on an annual basis. Two additional employees would be hired at a cost of $12.00 per hour with an estimated 100 hours per month per employee. Additional advertising will cost $2,000 per year. Should Helen proceed with the food truck project and if so what is how long will it take to pay off the project.
Helen of Hamburgers by Helen would like to take advantage of the lucrative food truck restaurant service. Currently Helen operates a popular restaurant in the suburbs. The food truck would allow her business to expand into the city and take advantage of the lunch crowd. Hamburgers by Helen currently sells 1,500 hamburgers per month. Helen charges $4.50 per hamburger. Helen estimates that the food truck would allow for a 40% increase in revenue from food truck sales. She also expects a 20% increase in sales at her restaurant due to the exposure from the food truck. She expects to spend $25,000 on a used truck and an additional $15,000 to have it converted into a working food truck. The maintenance and fuel cost are estimated at $500 per month. The city requires a license that costs $1,000 on an annual basis. Two additional employees would be hired at a cost of $12.00 per hour with an estimated 100 hours per month per employee. Additional advertising will cost $2,000 per year. Should Helen proceed with the food truck project and if so what is how long will it take to pay off the project.
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