Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $1,800. The machine should be usable for 3 years, after which it would be inefficient, obsolete anid would have to be disposed of at the dump Big Al bolieves that 10 cans a day will be purchased The plant is open five days a week, 50 weoks per year. A case of soda (24 cans) costs $5.52 and Big Al believes that a price of $.75 per can would win him good will What is the estimatod annual sales in cans of soda? 17011 What is the contribution margin per can of soda? (rounded to two places, Sl N) (17 02 How many cans of soda must be sold each yoar to breakeven? (Round up to zero places, cans) Annual incremental cash inflows from the soda machine?2 (rounded to two places, $# ##) (17.04) What is the payback period in years? (rounded to two places, #. # years) (17.05) If the time value of money is 12% per year what is the net present value? Use the tables on page 18. 17 06) What is the internal rate of return. Pick the closest interest rate from the tables on page 18 (17.071 14 15 16 17 Note: Show favorable variances as negative numbers What was the vaniable overhead efficiency variance ? (16 01) 7 What was the variable OH spending variance ? 116 02) 51 52 53 54 55 65 What is the fixed OH volume (denominator) variance? (16 031 66 67 68 69 79 80 81 enutis the fixed OH spending variance? 17 18 Present Value Tables