Simon Teguh is considering investing in a vending machine operation involving 20 vending machines located in various plants around the city. The machine manufacturer reports that similar vending machine routes have produced a sales volume ranging from 600 to 800 units per machine per month. The following information is made available to Teguh in evaluating the possible profit ability of the operation 1. An investment of $45,000 will be required, $9,000 for merchandise and $36,000 for the 20 2. The machines have a service life of five years and no salvage value at the end of that period 3. The merchandise (candy and soft drinks) retails for an average of 75 cents per unit and will 4. Owners of the buildings in which the machines are located are paid a commission of 5 cents machines Depreciation will be computed on the straight-line basis cost Teguh an average of 25 cents per unit. per unit of candy and soft drinks sold