Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $1,900. The machine should be usable for 6 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 6 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $6.48 and Big Al believes that a price of $.60 per can would win him good will. What is the estimated annual sales in cans of soda? 1500 1500 1500 1500 1500 1500 What is the contribution margin per can of soda? (rounded to five places, $#.#####) 0.6 0.27 0.33 $ How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans) 1900 0.33 5757.576 .6x = 0.33 .27x 1900 5757.575758 959.59596 Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##) 1500 1500 1500 1500 405 405 405 405 1095 1095 1095 1095 What is the payback period in years? (rounded to two places. #.## years) 9000 1,500 cans (22.01) 0.33000 (22.02) 960 cans (22.03) 1500 1500 9000 405 405 2430 1095 1095 6570 $ 405.00 (22.04)