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A leading beverage company sells its signature soft drink brand in vending machines for $0.99 per 12 oz. can. A vending machine has monthly fixed costs of space rental, energy consumption, and capital
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A leading beverage company sells its signature soft drink brand in vending machines for $0.99 per 12 oz. can. A vending machine has monthly fixed costs of space rental, energy consumption, and capital depreciation of $135. Variable cost for a can of soda is $0.43.

User Harshit Rastogi
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Answer:

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Step-by-step explanation:

  • Contribution per unit = Price - Variable cost = 0.99 - 0.43 = 0.56
  • Contribution per unit required=0.56 * (1+20%)=0.672
  • New selling price required=Contribution+Variable cost=0.672+0.42=$1.092

User Clever Neologism
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