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Munchie Mania Company operates and services snack vending machines located in restaurants, gas stations, and factories in four southwestern states. The machines are rented
Munchie Mania 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, Munchie Mania must rent the space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 30 machines. Fixed monthly expenses and other data follow (Click the icon to view the fixed monthly expenses.) Read the requirements. (Click the icon to view the other data.) (Enter any percentages or ratios in decimal form to two decimal places, XX.) Requirement 1. What is the monthly break-even point in number of units (snacks)? In dollar sales? Begin by determine the formula, and then enter the amounts to calculate the break-even in units. Break-even in units Data table Machine rental: 30 machines @ $ 48.00 Space rental: 30 locations @ $ 37.50 Part-time wages to service the additional 30 machines Other fixed costs Total monthly fixed costs Print Done 69 $ 1,440 1,125 1,500 435 $ 4,500 - X Data table Per Unit (Snack) Per $100 of Sales Selling price $ 1.25 100 % 0.50 40 Cost of snack $ 0.75 Contribution margin 60 % Print Done - X ak ve Requirements 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 39,000 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, Munchie Mania Company paid the vending machine manufacturer $0.25 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, Munchie Mania paid the machine manufacturer $0.45 for each unit sold in excess of the bre-even point, what would the new net income be if 39,000 units were sold?
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