Explain how owning and running a food truck might impact your sales and costs (Explain both variable and fixed costs).

Owning a food truck will result in initial capital expenditure but it will save future transportation costs to the company.

Explanation:

Buying the truck is initially expensive as it is a capital expenditure but in future company will be able to save huge transportation costs and revenue expenditures. When the company is closing the business it could earn some money from the salvage value of the truck but if the company pays out rentals  or transportation cost it will not be able to recover a single penny. Buying a truck is initial fixed expenditure but it will save routine variable cost to the company.

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