Fannys Famous Funnel cakes in Branson, MO has had a hard year because of lack...
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Fannys Famous Funnel cakes in Branson, MO has had a hard year because of lack of visitors during the pandemic. The owner has decided to go mobile and is equipping a food truck and must decide how many fry stations to rent for the truck. It will cost $400 to rent each fry station per month and $1500 per month to staff the truck. Miscellaneous fixed costs are estimated at $200 per month. Ingredients and preparation costs are $1.45 per funnel cake and they will be sold for $4.00 each.
Assume that the truck will be produce to order and has a maximum capacity of 100 cakes per day. The truck will travel around the Branson area and be open for business 150 days per year.
a. Build a spreadsheet model for the food truck that will calculate Annual Profit. The following uncertain variables must be used: Number of fry stations; Daily demand.
b. Use a two-way table to display the sensitivity of profit to number of fry stations (from 1 to 5) and daily demand (from 100 to 500)
c. Use Goal-Seek to determine what the daily demand for funnel cakes must be for us to break-even if we rent three fry stations.
PLEASE SHOW ALL STEPS IN EXCEL
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