Question

IniVEND has been in business for a year now and seem to be doing quite well. As they explore opportunities for growth, they want to figure out what their future financial position is going to look like as well as analyze pportunities to diversify their product and machine offering. UniVEND will upgrade its machines according to their customers' needs. All values are provided in Turkish Liras (TL). Part 1 Answers What is the total rent cost of all the machines used by UniVEND each month? Report the total monthly fixed cost basis. How many products have to be sold each month to cover the monthly fixed cost basis? Prepare an annual Pro Forma Income Statement of UniVEND based on the information provided b) Revenue: Cost of Goods Sold: Gross Margin: S&A Expenses Income before Taxes Income Tax Expense Net Income b) d) Some customers have been complaning about finding coins for the machine. Thus, UniVEND decided to upgrade their machines to pay with a zip, a plastic key that acts like a debit card. Customers can still pay with coins. UniVEND willl onl Part 2 y upgrade "Vendo Cold Drink machines UniVEND provides small amount of discount for the zip to encourage adoption. The company also sell the zip with the price of 15 TL. The upgrade cost for each machine is 250 TL and material cost per zip is 1 TL What is the total upgrade cost for all "Vendo Cold Drink" machines? Consider a customer of Univ END monthly spends 35 TL in Vendo Cold Drink machines. The zip provides to customers 8% discount for any product in that type of machines. How many months later, customer will cover the cost that he/she paid for zip? Do not round the number to the nearest integer.) After upgrading "Vendo Cold Drink" machines and the promotion ofzip the average sales number monthly or every upgraded machine has increased by 11%. Also the discount or every product in these machines is 8%. Report the new numbers. (Hint: Do not forget to add upgrade cost!) b) Cost of Goods Sold: Net Income 13 Average Earning Turkish Corporate Tax Rate 20.0% verage price 2.00 TL per product Variable Costs Average Cost Average Sales Number 1.65 TL per product per product average sales (monthly) 7,500.00 per machine average cost variable overhead 0.05 TL Fixed Costs Vending Machines Necta Snaccky Max Necta Snaccky Elektral Midi Bufe Elektral Maxi Bufe Vendo Cold Drink Number of Machines Vending Machines Rent Necta Snaccky Max Necta Snaccky Elektral Midi Bufe Elektral Maxi Bufe Vendo Cold Drink 250.00 TL 250.00 TL 350.00 TL 650.00 TL 450.00 TL 200.00 TL 4,000.00 TL monthly -per machine monthly -per machine monthly -per machine monthly - per machine monthly - per machine per machine for all machines 13 Utilities (monthly) Fixed Overhead(monthly) Selling & Admin Costs 3,300.00 TL 18,000.00 TL monthly annually Selling and Administration

Please can you solve by showing the formulas

Answer 1

1. (a) answer = 11,550 TL

no of machines total monthly rent (per machine rent * total machines) Necta Snaccky Max rent (monthly) Necta Snaccky Max rent (monthly) Elektral Midi Bufe rent (monthly) Elektral Maxi Bufe rent (monthly) Vendo Cold Drink rent (monthly) 250 250 350 650 450 1250 750 1750 1950 5850 11550 13

(b) Fixed cost monthly basis = Total monthly Fixed Cost / total number of machines

21,350 TL / 29 machines = 736.206 TL per machine

(c) monthly cost basis is rounded off to 736.206 TL , per product price is 2 TL , so total number of products to be sold per month to cover the cost basis would be 736.206 TL / 2 TL = 367 products

Question 2

question 3

(a) the total upgrade cost of the vending drink machine would be 250TL per machines and for a total of 13 machines, the total upgrade cost would be 3250 TL. The material cost of zip will not be included since it is a variable cost and the quantity of the zips will be depended on the customer demand and the companies choice in how many zips they would like to make prior.

(b) On the the 35 TL spent every month, the 8% discount would amount to 2.8 TL. So for the zip cost of 15 TL, the customer would recover the zip costs in 5.357 months ( zip cost/ discount every month= 15/ 2.8)

question 4

( will need more information relating this questions, including number of zip solds not just increased in sales, since each customer can buy multiple products but will just use one zip)