Question: please post in excel 2. Convenience R Us is considering offering bundled wood sales through a self-service company that would locate a machine on the
2. Convenience R Us is considering offering bundled wood sales through a self-service company that would locate a machine on the edge of the parking lot. HeatMe would charge a monthly lease fee of $800 for setup and maintenance and there is a utilities' cost Convenience R Us pays of $0.5 for every bundle of wood that is dispensed to customers. WinterLove would charge a monthly lease of only $550, but the added energy cost for every bundle of wood dispensed is $0.85 due to the larger size of the machine. Customers purchase each bundle of wood for $6.00, regardless of the company, but Convenience R Us only earns 30% of this revenue for each bundle of wood sold. a. What is the annual break-even point for each option? (10 pts) b. At what volume in number of bundles of wood would the two options have the same cost? (10 pts) c. At what forecasted volume should Convenience R Us select HeatMe and what volume should they select WinterLove and why? (5 pts)
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