wo of the resources needed to clean the plant are labor and cleaning supplis. Ihe cost uiver To both resources is number of times the plant is cleaned. Plant cleaning laborers are full-time employees who are paid the same wages regardless of the number of times the plant is cleaned. Cleaning supplies is a variable cost. The March cost of labor was $21,000 and cleaning supplies used cost $8,000. 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per cleaning changes in response to the number of times the plant is cleaned. What is the predicted total cost of plant cleaning for the next quarter? 2. Suppose Napco can hire an outside cleaning company to clean the plant as needed. The charge rate for cleaning is $5,700 per plant cleaning. If the outside cleaning company is hired, Napco can lay off the workers who are now cleaning the plant and will spend nothing for cleaning sup- plies. Will Napco save money with the outside cleaning company over the next quarter? Prepare a schedule that supports your answer. 2-A2 Cost-Volume-Profit and Vending Machines Vendmart Food Services Company operates and services snack vending machines located in restau- rants, gas stations, and factories in four southwestern states. The machines are rented from the manu- facturer. In addition, Vendmart must rent the space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 80 machines. Fixed monthly expenses follow: Machine rental: 80 machines @ $22.10 $1,768 Space rental: 80 locations@$20.00 1,600 500 Part-time wages to service the additional 80 machines Other fixed costs 132 Total monthly fixed costs $4,000 Other data follow: Per Unit (Snack) Per $100 of Sales Selling price $1.00 100% Cost of snack .68 68 Contribution margin $.32 32% These questions relate to the given data unless otherwise noted. Consider each question independently 1. What is the monthly break-even point in number of units (snacks)? In dollar sales? 2. If 45,000 units were sold, what would be the company's net income? 3. If the space rental cost was doubled, what would be the monthly break-even point in number of units? In dollar sales? 4. Refer to the original data. If, in addition to the fixed space rent, Vendmart Food Services Company paid the vending machine manufacturer $.07 per unit sold, what would be the monthly break- even point in number of units? In dollar sales? 5. Refer to the original data. If, in addition to the fixed rent, Vendmart paid the machine manufac- turer $.11 for each unit sold in excess of the break-even point, what would the new net income be if 45,000 units were sold? 2-A3 Exercises in Cost-Volume-Profit Relationships Upcraft Moving Company specializes in hauling heavy goods over long distances. The company's revenues and expenses depend on revenue-miles, a measure that combines both weights and mileage