Funta Inc., a beverage maker, sells its coffee/tea and fruit drinks via vending machines across USA. Funta
Question:
Funta Inc., a beverage maker, sells its coffee/tea and fruit drinks via vending machines across USA. Funta generates annual sales of $480 million, with a Profit Margin (PM) of 10% and an Asset Turnover (ATO) of 1.6. Funta's CFO wants to install an AI chip on all its vending machines to allow dynamic pricing of its products (4 oz, 8 oz and 12 oz cans) based on real-time outside temperature and time-of-day to maximize its total vending revenues. This AI chip project will cost $30 million in hardware and installation costs and is expected to boost sales by $20 million and increase PM to 12%. Based solely on the above financial considerations, explain whether you agree with Funta's CFO on her AI project. do it in excel and upload
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay