Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Twix $2 Dr.Pepper $1.50 Use Excel please NEED HELP ASAP Suppose you have decided to start a small business selling snacks from vending machines. You

Twix $2
Dr.Pepper $1.50
Use Excel please
NEED HELP ASAP image text in transcribed
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 bookstore. Rental for the space will cost $200 per month. Vending machines can be purchased at wholesale clubs such as Sam's Club and Costco. You can also purchase the snacks to stock the machines in bulk there. Required: 1. Either visit a local warehouse club or review its website to determine the initial cost to purchase a snack vending 2. Assume you are initially going to haye gnly one type of snack bar in your machine. What type of snack bar will you choose? If you purchase Bars in bulk, what is your cost per bar? 3. How much will you charge for each bar sold? 4. What is your contribution margin per bar? How many bars must you sell to cover the cost of the vending machine? 5. When you, baxe covered the initial investment, what will the monthly break-even point be in the number of bars 6. Repeat requirements 2 through 5 assuming you decided to have a drink yending machine instead of a snack machine. Remembsr to find the price for beverage vending machine. You may assume rental for the vending machine space is $200 per month regardless of its type. 7. Assume your machine can accommodate more than one product, for example, a snack maching that dispense both chips and candy bars or a drink machine that offers both soda and water. Repeat requirements through 5 assuming hayg different prises, variable costs, and contribution margins. Perform the analyses for three levels of sales mix: 30730, 36770, 70738

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting A Smart Approach

Authors: Mary Carey, Cathy Knowles

4th Edition

0198844808, 9780198844808

More Books

Students also viewed these Accounting questions