Final decision to purchase the machine

Reference no: EM13136380

Yummy Juices is a juice shop located in downtown Miami. The owner is considering the purchase of a new juicer to preserve her customer base in the market. The shop is experiencing increased difficulty in competing with juice chains such as Jumba Juice that offer customers a wider variety of specialty juices and mixes. The shop is open weekdays only. The cost of the new machine is $50,000. The selling price of the new juice mixes will be $2.00 per cup, and the variable cost per cup is $.50.

Required:

1. What is the number of juices per day that must be sold to achieve break even?

2. Upon further investigation, the owner learns that the new machine requires substantial maintenance, which will increase the variable cost by $.50 per juice. How would this information affect your answer?

3. What other factors should the owner consider before making the final decision to purchase the machine?

Reference no: EM13136380

Questions Cloud

Opposition evaluation-same-sex marriage : Select a contemporary issue that has polarizing viewpoints, such as environmental policy, taxation and income redistribution, same-sex marriage, worker's rights, immigration, and so forth.

How many percent of women last until in birthing process : The length of pregnancies are normally distributed with a mean of 268 days and standard deviation of 15 days. How many days do 80 percent of women last until in their birthing process?

Conditions of military draft : The answer provides the conditions that would exist if the draft were implemented today that are different from those of the draft during the Vietnam War.

What is the amount of the gain eligible for installment sale : Charlotte sold her unincorporated business for $360,000 in 2008. The sales contract allocated $150,000 to equipment, $110,000 to land, and $100,000 to goodwill.

Final decision to purchase the machine : What other factors should the owner consider before making the final decision to purchase the machine?

Distribution of wealth-power in american society : What difference might it make if individual citizens understood the distribution and concentration of wealth, power, and influence in the United States?

What would limits be control limits based on samples : In the past, only 5% of these diskettes have had bad sectors. If the company wishes to set 99.7% control limits based on samples of size 500, what would these limits be?

Theme of love, both worldly and religious show love of god : Trace the theme of love, both worldly and religious, through the arts of the later Middle Ages. In several examples, show how love of God,

Evaluation of federal bureaucracies : What specific items ought to be listed on a report card that is used to evaluate a federal bureaucracy? Which agencies or departments do you think would get the worst grades?

User Account

All Pages