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a. Calculate the breakeven number of additional customers for each added hour of operation up to 4am. b. Calculate the breakeven number of additional customers

a. Calculate the breakeven number of additional customers for each added hour of operation up to 4am. b. Calculate the breakeven number of additional customers for an entire year, assuming (i) a closing time of 4am and then (ii) your recommended closing time, if it differs from 4am. c. Find the safety margin on new customers for the year. image text in transcribed

Question Assume that: contribution margin is $7.27, there are 2 workers and after and their wages are $10 per hour before midnight, and $15 after midnight. The cost of better security system is approximately $21,000. The improvements will have a life of seven years and we depreciate our assets using the straight-line method. The improvements are expected to have no salvage value. There are 360 days in one business year. Do not include depreciation for calculating breakeven for each hour; only for year calculation. a. Calculate the breakeven number of additional customers for each added hour of operation up to 4am. b. Calculate the breakeven number of additional customers for an entire year, assuming (i) a closing time of 4am and then (ii) your recommended closing time, if it differs from 4am. c. Find the safety margin on new customers for the year. Assume, Sales= A (don't need exact number, just add in formula, please). [Hint: For the per-year analysis, remember to account for the cost of the security upgrade. Use straight-line depreciation as a measure of the fixed cost of the security upgrade, and then, add the cost of overtime labor for the additional hours of business for each of the 360 business days in the year.] Please, show the calculations. Thank you

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