Cost-Volume-Profit and Vending Machines

Vendmart Food Services Company operates and services snack vending machines located in restaurants, gas stations, and factories in four southwestern states. The machines are rented from the manufacturer. In addition, Vendmart must rent the space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 40 machines.

Fixed monthly expenses follow:

Machine rental: 40 machines @ $53.50

$2,140

Space rental: 80 locations @ $38.80

1,552

Part-time wages to service the additional 40 machines

2,008

Other fixed costs

300

Total monthly fixed costs

$6,000

Fixed monthly expenses follow:

Other data follow:

Per Unit (Snack)

Per $100 of Sales

Selling price

$1.00

100%

Cost of snack

.80

80

Contribution margin

$.20

20%

These questions relate to the given data unless otherwise noted. Consider each question independently.

1. What is the monthly break-even point in number of units (snacks)? In dollar sales? 2. If 40,000 units were sold, what would be the companys net income? 3. If the space rental cost was doubled, what would be the monthly break-even point in number of units? In dollar sales? 4. Refer to the original data. If, in addition to the fixed space rent, Vendmart Food Services Company paid the vending machine manufacturer $.02 per unit sold, what would be the monthly breakeven point in number of units? In dollar sales? 5. Refer to the original data. If, in addition to the fixed rent, Vendmart paid the machine manufacturer $.05 for each unit sold in excess of the break-even point, what would the new net income be if 40,000 units were sold?

can you please show the formulas used specially in question 2 and 5

a schedule that supports your answer. 2-A2 Cost-Volume-Profit and Vending Machines Enriquez Food Services Company operates and services snack vending machines located in restan rants, gas stations, and factories in four southwestern states. The machines are rented from the man facturer. In addition, Enriquez must rent the space occupied by its machines . The following expens and revenue relationships pertain to a contemplated expansion program of 40 machines Fixed monthly expenses follow: Machine rental: 40 machines @ $53.50 Space rental: 40 locations @ $38.80 Part-time wages to service the additional 40 machines Other fixed costs Total monthly fixed costs $2,140 J 1,552 2,008 300 $6.000 Other data follow Selling price Cost of snack Contribution margin Per Unit (Snack) $1.00 80 $20 Per $100 of Sales 100% 80 20% CHAPTER 2. INTRODUCTION TO COST BEHAVIOR AND COST VOI These questions relate to the given data unless otherwise noted. Consider cach question independently 1. What is the monthly break-even point in number of units (snacks)? In dollar sales? 2. If 40,000 units were sold, what would be the company's net income? 3. If the space rental cost was doubled, what would be the monthly break even point in number of units? In dollar sales? 4. Refer to the original data. If, in addition to the fixed space rent. Enriquez Food Services Company paid the vending machine manufacturer $.02 per unit sold, what would be the monthly break-even point in number of units? In dollar sales? 5. Refer to the original data. If, in addition to the fixed rent, Enriquez paid the machine manufacturer S.05 for each unit sold in excess of the break even point, what would the new net income be if 40.000 units were sold