Only answers 4-6 please. Thanks!

Suppose you have decided to start a small business selling snacks from vending machines. You have secured a location for one candy vending machine in a local coffee shop. Rental for the space will cost $200 per month. Vending machines can be purchased at wholesale clubs such as Sams Club and Costco. You can also purchase the snacks to stock the machines in bulk at those stores.

Required:

1. Visit Sams Club or Costcos website and find the initial cost to purchase a snack vending machine.
   1. $5,200.00
2. Assume you are initially going to have only one type of snack in your machine. What type of snack will you choose? If you purchase the snack in bulk what is the cost per unit?
   1. Variety of healthy snacks (popcorn, pretzels, pita chips, etc)
   2. Cost per unit: $64.98, 48 ct, $1.35 ea
3. How much will you charge for each snack that you sell?
   1. $2.75
4. What is the contribution margin per snack? How many snacks must you sell to cover the fixed cost of the vending machine?
5. After you have covered the cost of the vending machine, what will the monthly breakeven point be in number of snacks and in sales dollars?
6. After you have covered the cost of the vending machine, how many snacks must you sell to earn a target profit of $800 per month?