Question: Case 2 - Local Vending (40 marks) You are looking into the business done by the Coke machines leased by your company, National Distributing, which

 Case 2 - Local Vending (40 marks) You are looking into

Case 2 - Local Vending (40 marks) You are looking into the business done by the Coke machines leased by your company, National Distributing, which are placed in various locations in nearby businesses. The Coca-Cola Company does not charge you for the machines, only for the Coke products which you purchase. You are responsible for insurance and maintenance. The businesses do not charge you to place the machines in their business. One fulltime driver is hired in order to service these machines. You are concerned that sales of Coke at your machines may not always stay at their current level. Alternatively, it is possible that sales may be higher in some months. You are interested in discovering how this would affect income. You would also like to see what happens to income if you raise the price charged per can, knowing this might lower your monthly Coke sales. You decide to explore all these different avenues by using the tools provided by Excel. 1. Open Vending worksheet. 2. The company has 12 machines that sell an average of 2,000 cans of Coke per month, for a total of 24,000 cans per month. In the Income Statement, input the data below and calculate the total lines that are in Bold on the worksheet : Revenue Units Sold 24,000 Price charged per Coke $1.50 Variable Expenses Cost per Coke $0.75 Fixed Expenses Maintenance $400.00 Insurance $1,000.00 Salary $2,000.00 Taxes $1,800.00

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