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Will rate if correct please show work Problem Riccardo Food Servies Co. operates and services soft drink vending machines located in restau rants, gas stations,

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Problem Riccardo Food Servies Co. operates and services soft drink vending machines located in restau rants, gas stations, and factories in four southeastern states. The machines are rented from the manufacturer. In addition, Riccardo must rent the space occupied by its machines. The following monthly fixed costs pertain to Riccardo's current inventory of 40 machines. $2,140 1,552 2,008 Machine rental: 40 machines @$53.50 Space rental: 40 locations @average of $38.80 Part-time wages to service the additional 40 machines ($50.20/machine) Other fixed costs Total monthly fixed costs 300 S6.000 All products offered in each vending machine sell for unit price of $1.00 and have a variable cost of $0.80 Requirements (consider each independently) I. On average, how many units must each vending machine sell in order for Riccardo to earn a profit of $10,000? (5 points) Suppose Riccardo is considering expanding to a new location, which will house 5 additional machines. Terms for the new space are similar, except the owner of the space charges 2 cents per unit sold in addition to a monthly rental fee. For each machine, Riccardo anticipates the same monthly machine rental and part-time wages for machine servicing as with the current machines, and other fixed costs will total $35/machine. Riccardo only wishes to expand to the new location if the company can earn at least $2,000 across the 5 machines. If Riccardo anticipates that sales for each machine will total $3,200, what is the maximum space rental charge (per machine) that Riccardo can tolerate and still earn the desired profit? (5 points) 2

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