Job portable toilets must purchase new portable toilets

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Reference no: EM131623671

Johnny of the Job (JOJ) portable toilets must purchase new portable toilets that will be rented to construction companies for job site use. The toilet model the company is considering cost $275 per unit. The company plans to purchase 50 toilets. Each month the service and upkeep for the toilets is estimated to cost $8.75 per unit. Every 6 months the toilets must undergo cleaning and sanitizing that is contracted to cost $250 for all 50 toilets. The cleaning and sanitizing must also be performed before the company can dispose of the units, which will have a salvage value of $50 per toilet. JOJ wishes to make $5 per unit in addition to covering all costs. If the MARR for JOJ is 6%, how much should be charged (to the nearest dollar) per toilet per month for rental? Assume that all toilets are rented and can be used for 2 years.

Reference no: EM131623671

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