Yummy juices is a juice shop located in downtown miami the

Assignment Help Accounting Basics

Reference no: EM13597625

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: EM13597625

Questions Cloud

On january 1 pete bought a used a used turck for 14000 he : the following events toook place at petes painting company during 2010.a on january 1 pete bought a used a used turck

Vickers company reports taxable income of 4500 for 2010 the : vickers company reports taxable income of 4500 for 2010. the company has two temporary differences between pretax

At the end of 2009 extreme fitness has adjusted balances of : at the end of 2009 extreme fitness has adjusted balances of 800000 in accounts receivable and 55000 in allowance for

At the end of 2010 keil company reports a pretax operating : at the end of 2010 keil company reports a pretax operating loss of 80000 for both financial reporting and income tax

Yummy juices is a juice shop located in downtown miami the : yummy juices is a juice shop located in downtown miami. the owner is considering the purchase of a new juicer to

For each of the above transactions specify whether the item : heath limited is trying to determine the value of its ending inventory at february 28 2012 the companys year end. the

The company has paid annual dividends of 32 48 and 60 a : the company has paid annual dividends of .32 .48 and .60 a share over the past three yrs. the company will maintian a

Many assets are presented at historical cost why does this : many assets are presented at historical cost. why does this accounting principle cause difficulities in financial

Provide your manage a comparison of the current reporting : provide your manage a comparison of the current reporting for debtexplaining the requirements for each type bond

User Account

All Pages