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Buzz Lightyear a clothing store and is considering renting a soda vending machine for his store. He can rent the soda machine for $125 per
Buzz Lightyear a clothing store and is considering renting a soda vending machine for his store. He can rent the soda machine for $125 per month. Buzz would supply the soda for the machine which he can buy for $3 per twelve packs. Buzz plans to charge $0.75 per can. Required: a. List the fixed costs for renting and stocking the soda machine. b. List the variable costs for renting and stocking the soda machine. c. Calculate the contribution margin per can of soda. d. (1) Calculate how many cans of soda Buzz must sell each month to break even. (2) Prepare a contribution income statement that proves the answer you just calculated. e. (1) Ca ulate how many cans of soda Buzz must sell each month to earn a profit of $50. (2) Prepare a contribution income statement that proves your answer to the previous requirement
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