Case Study

Need attached assignment completed by Saturday.  Please show calculation and answer all questions.

 

Thanks

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iuices is a juice shop locerted in downtown Miami. The owner
is considering the purchase of a new juicer to preserve her customer
base in the market. The shop is r:xperiencing increased difficulty in
competing with juice chains such as lumba 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 he $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?

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

3. What other factors shoulrJ the owner consider before making
the final decision to purclrase the machine?

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