Problem (1): For a vending machine project, the site cost = 12,000 SR/month, material cost 1 SR/unit, and insurance cost = 500 SR/month, the labor cost = 1,500 SR/month, unit price 3 SR per unit, and electricity cost = 1000 SR/ month and = 0.5 SR/unit. a) Find the Unit Contribution and the Breakeven Quantity. b) Determine the Total Contribution and Total Profit at sales of Q =15,000 unit.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 12P
icon
Related questions
Question

2

Problem (1): For a vending machine project, the site cost = 12,000 SR/month, material cost
= 1 SR/unit, and insurance cost = 500 SR/month, the labor cost = 1,500 SR/month, unit price
- 3 SR per unit, and electricity cost = 1000 SR/ month and = 0.5 SR/unit.
a) Find the Unit Contribution and the Breakeven Quantity.
b) Determine the Total Contribution and Total Profit at sales of Q=15,000 unit.
Transcribed Image Text:Problem (1): For a vending machine project, the site cost = 12,000 SR/month, material cost = 1 SR/unit, and insurance cost = 500 SR/month, the labor cost = 1,500 SR/month, unit price - 3 SR per unit, and electricity cost = 1000 SR/ month and = 0.5 SR/unit. a) Find the Unit Contribution and the Breakeven Quantity. b) Determine the Total Contribution and Total Profit at sales of Q=15,000 unit.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Workplace diversity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,