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I need the formula for this assignment. If you don't have the formula, please don't answer my question. Thank you. I have also looked for
I need the formula for this assignment. If you don't have the formula, please don't answer my question. Thank you. I have also looked for the answers posted by others. If you want to answer me by copying others' answers, please do not reply. Thank you!
I need the formula for this assignment. If you don't have the formula, please don't answer my question. Thank you. I have also looked for the answers posted by others. If you want to answer me by copying others' answers, please do not reply. Thank you!
I need the formula for this assignment. If you don't have the formula, please don't answer my question. Thank you. I have also looked for the answers posted by others. If you want to answer me by copying others' answers, please do not reply. Thank you!
Pony Espresso is a small business that sells specialty coffee drinks at office buildings. Each morning and afternoon, Pony Espresso trucks arrive at offices front entrances, and the office employees purchase various beverages such as Java du Jour and Caf de Colombia. The business is profitable. Pony Espresso offices, however, are located north of town, where lease rates are less expensive, and the principal sales area is south of town. This means the trucks must drive across town four times each day.
The cost of transportation to and from the sales area plus the power demands of the trucks coffee brewing equipment are a significant portion of variable costs. Pony Espresso could reduce the amount of driving and, therefore, the variable costs, if it moved the offices closer to the sales area.
Pony Espresso presently has fixed costs of $10,000 per month. The lease of a new office, closer to the sales area, would cost an additional $2,200 per month. This would increase the fixed costs to $12,200 per month.
Although the lease of new offices would increase the fixed costs, a careful estimate of the potential savings in gasoline and vehicle maintenance indicates that Pony Espresso could reduce the variable costs from $0.60 per unit to $0.35 per unit. Total sales are unlikely to increase as a result of the move, but the savings in variable costs should increase the annual profit.
Consider the information provided to you from the owner in the AYK19_Data.xlsx data file. Especially look at the change in the variability of the profit from month to month. From November through January, when it is much more difficult to lure office workers out into the cold to purchase coffee, Pony Espresso barely breaks even. In fact, in December, the business lost money.
JEbvd Module 5- Excel Assignment.xlsx New Tab 8 Arial v 10 A A v WE 2YD v B I Uv Av abca v v % , 68 00 30 v ?? E22 fx Sum A B C D E F G H | J K L M N 0 P Q R S T U V W/ X EEBIT 1 2 3 4 Moving Espressos 5 Units sold per month: 20,000 Unit variable costs: $0.35 6 Average unit sales price: $2.20 | Current fixed costs: : $10,000 7 Added lease payment, new offices: $2,200 Projected fixed costs: $12,200 8 9 2008 sales month Units Sales Fixed Costs Variable Costs 10 January 6.582 $12,200 11 February 11,121 $12,200 12 March 14.178 $12,200 13 April 13.692 $12,200 14 May 11,597 $12,200 15 June 9,599 $12,200 16 July 9,913 $12,200 17 August 10,926 $12,200 18 September 14,349 $12,200 19 October 12,965 $12,200 20 November 6,972 $12,200 21 December 4,972 $12,200 22 Sum 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 AYK 19 Moving Dilemma - No Move Moving Dilemma - Move + 100%Step by Step Solution
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