Word File Edit View Insert Format Tools Table Window Help 98% O A Fri 2:56 AM Q AutoSave OFF o su: Form 2 - Assignment Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments C Get Homework Help With Calibri 12 ~ A Aav V Study Pack Paste x Sensitivity > . BI U v ab x APA Styles Styles Dictate T. Pane GU-PR08ASW-F02 GULF UNIVERSITY Ahmed & Bro. Co. operates and services snack vending machines located in restaurants, metro stations, canteens, etc. The machines are rented from the manufacturer. In addition, the company must rent the space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 20 machines. Monthly fixed costs consist of the following: Machine rent (20 units X 26.75) f 535 Space rent (20 locations X 14.40) 288 Wages to service the additional 20 machines 726 Other fixed costs 41 Total fixed costs 1,590 Other data: % of sales Selling price (2.50 per unit) 100% Cost of snack (0.50 per unit) 20% Required Consider each of the following questions separately. 1. Calculate the contribution margin per unit and contribution margin percentage. 2. What is the monthly breakeven point in unit sales and pounds? 3. If 20,000 units were sold, what would be the company's net income? 4. If the space rent was doubled, what would be the monthly breakeven point in unit sales and pounds? 5. In addition to the fixed rent, if the machine manufacturer was paid 0.10 for each unit sold, what would be the new a. breakeven units and breakeven revenues? b. operating income if 20,000 units were sold? Refer to the original data. Continue Page 3 of 5 508 words English (United States) O Focus E $ E 152% W W