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accounting homework that is due on sunday,need help. ! Simon Teguh is considering investing in a vending machine operation involving 20 vending machines located in
accounting homework that is due on sunday,need help. !
Simon Teguh is considering investing in a vending machine operation involving 20 vending machines located in various plants around the 1 An investment of $45,000 will be required, $9,000 for merchandise and $36,000 for the 20 machines. 2 The machines have a service life of five years and no salvage value at the end of that period. Depreciation will be computed on 3 The merchandise (candy and soft drinks) retails for an average of 75 cents per unit and will cost Teguh an average of 25 cents 4 Owners of the buildings in which the machines are located are paid a commission of 5 cents per unit of candy and soft drinks s 5 One person will be hired to service the machines. The salary will be $1,500 per month. 6 Other expenses are estimated at $600 per month. These expenses do not vary with the number of units sold. a. Determine the unit contribution margin and the break-even volume in units and in dollars per month. (Do not round intermedi c. What sales volume in units and in dollars per month will be necessary to produce an operating income equal to a 30 percent an d. Teguh is considering offering the building owners a flat rental of $30 per machine per month in lieu of the commission of 5 cent Stop-n-Shop operates a downtown parking lot containing 800 parking spaces. The lot is open 2,500 hours per year. The parking charge pe b. What is the contribution margin ratio? What is the annual break-even point in dollars of parking revenue? c. Suppose that the five employees were taken off the hourly wage basis and paid 30 cents per car parked, with the same vacatio he city. The machine manufacturer reports that similar vending machine routes have produced a sales volume ranging from 600 to 800 unit on the straight-line basis. nts per unit. s sold. ediate calculations. Round "Unit contribution margin" to 2 decimal places.) annual return on Teguh's $45,000 investment? (Do not round intermediate calculations.) ents per unit sold. What effect would this change in commission arrangement have on his monthly break-even volume in terms of units? (D per car is 50 cents per hour; the average customer parks two hours. Stop-n-Shop rents the lot from a development company for $7,250 pe ation pay as before. (1) How would this change the contribution margin ratio and total fixed costs? (Hint: The variable costs per parking-spa units per machine per month. The following information is made available to Teguh in evaluating the possible profitability of the operation. (Do not round intermediate calculations.) per month. The lot supervisor is paid $24,000 per year. Five employees who handle the parking of cars are paid $300 per week for 50 wee space hour will now include 15 cents, or one-half of the 30 cents paid to employees per car parked, because the average customer parks fo . weeks, plus $600 each for the two-week vacation period. Employees rotate vacations during the slow months when four employees can han s for two hours.) (2) What annual revenue would be necessary to produce operating income of $300,000 under these circumstances? handle the reduced load of traffic. Lot maintenance, payroll taxes, and other costs of operating the parking lot include fixed costs of $3,000 00 per month and variable costs of 5 cents per parking-space hourStep by Step Solution
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