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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
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 $ The machine should be usable for years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that cans a day will be purchased. The plant is open five days a week, weeks per year. A case of soda cans costs $ and Big Al believes that a price of $ per can would win him good will.
What is the estimated annual sales in cans of soda?
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What is the contribution margin per can of soda? rounded to two places, $###
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How many cans of soda must be sold each year to breakeven? Round up to zero places, ##### cans
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Annual incremental cash inflows from the soda machine? rounded to two places, $###
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What is the payback period in years? rounded to two places, ### years
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If the time value of money is per year what is the net present value? Use the tables on page
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What is the internal rate of return. Pick the closest interest rate from the tables on page
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PLEASE FILL IN TABLES SHOW
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