You are a marketing director for a Mexican taco restaurant located in Lynchburg VA. The average order size of your customers is $7.00 per order. That means that when all of your food orders are divided by your total number of customers the average amount is $7.00. Your variable cost per order is $3.00 in food costs and paper products. Of course there are also fixed costs whether you sell one or a hundred. These include your building lease $2,000 per month electricity $500 per month and labor $3,100 per month. Using this formula what is the break even Point and how many meals at $7.00 would need to be sold before I make a profit
