Here is what I have for the question so far if you could add to my "answer" I will rate as helpful I am stuck and Really Appreciate any help with this , I don't know how to make the "account table like in the example either" If can help me with this I appreciate it :)

CRITICAL THINKING #3

RESEARCHING COST OF OPERATING VENDING MACHINES

Suppose we are going to start a small business of selling snacks from vending machines.

We will secure

the location for candy vending machine in a local bookstore. Rental for the space

will cost $

4

00 per

month.

Vending machine can be purchased at wholesale clubs such as Sam's Club and Costco. We will purchase

the snacks the machines in bulk there.

The initial cost of purchasing a snack vending machine is around $

4

,000.

We should go for

protein snack bars like kinds plus, nature valley protein. Protein bars are very

commonly consumed by people as a nutrient supplement. In bulk purchase, 1 bar will cost around $1.

Average selling cost of 1 bar will be $

1

.

3

Profit on selling of 1 bar = $ 0

.

5

to recover the vending machine cost as;

N x

$

0.

3

=

4

,000

N =

4

,000/0.

3

N =

13

,

333.33

bars need to be sold.

Monthly sale of bars is expected around

7

,000 bars, therefore, total profit per month will be $0.

3

x

7

,000

bars = $

2

,

1

00.

Cost of beverage ven

ding machine is around $

3

,

8

00 and additional rental charges are $

4

00 per month.

Cost of beverages vary form type to type like soft drinks, juice cans, water bottles.

Let us assume cost of 1 can in bulk purchase be $1.

7

and its selling price be $2, monthly breakdown or

profit will be 3,000 x $0.

3

= $

9

00

-

rent $

4

00 = $

5

00 per month.

Now here is the example of what is due

S6-3 Researching Cost of Operating Vending Machines, Performing Cost-Volume-Profit Analysis, Multiproduct CVP 4 LO 6-1, 1 6-6 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 machine. 2. Assume you are initially going to have only one type of snack bar in your machine. What type of snack bar will you choose? If you purchase the 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 have covered the initial investment, what will the monthly break-even point be in number of bars and in sales dollars? 6. Repeat requirements 2 through 5 assuming you decided to have a drink vending machine instead of a snack machine. Remember to find the price for a 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 machine that can dispense both chips Page 300 and candy bars or a drink machine that offers both soda and water. Repeat requirements 2 through 5 assuming you have decided to offer two products. The products should have different prices, variable costs, and contribution margins. Perform the Page 301 analyses for three levels of sales mix: 50/50, 30/70, and 70/30.