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Annie's Homemade currently owns one push cart along with a branded tent to facilitate off - site sales. The company is considering buying a second
Annie's Homemade currently owns one push cart along with a branded tent to facilitate offsite sales. The company is considering buying a second push cart and tent for $ to expand its offsite sales opportunities. Because the company's cargo trailer has the capacity to transport two push carts, there is no need to buy an additional trailer at this time. Annie's provided the following estimates to assist with analyzing the investment in an additional push cart:
Additional sales events per month in June, July, August, and September
Average number of servings sold per event
Selling price per serving
Ingredients and packaging cost per serving
Average time for manager to make one batch of servings of ice cream
Average time for employees to prepackage one serving of ice cream Pickup truck diesel fuel, oil, and diesel exhaust fluid expenses Average duration of each event including drive time
Average number of employees working at each event
Hourly wage rate for managers
Hourly wage rate per employee
Average roundtrip mileage to each sales event
Required:
What is the net cash inflow for one additional offsite event?
Note: Round your answers to decimal places.
Answer is not complete.
tableSalesIngredientsand packaging,$Production labor cost: manager,,Production labor cost: employees,,Event labor cost: manager,,Event labor cost: employees,,Pickup truck expenses,,Net cash inflow for one additional offsite event,$
What is the net cash inflow per month, assuming six events per month?
Answer is complete but not entirely correct.
Net cash inflow per month
What is the second push cart's payback period in months, assuming six events per month?
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