Javier is the business manager of his college. in his role, javier makes a lot of business decisions. javier is currently considering installing a vending machine in one of the dorms for soft drinks. the machine rents for $200 a month and the electrical use is minimal. javier can buy soft drinks for $.25 each and plans on charging $.75 each from the vending machine. what is the contribution margin on the soft drinks? . currently, the machine has a sales volume of 400 cans a month. javier thinks raising the price to $.80 will not have any effect on sales. what impact would raising the price to $.80 have on overall profit or loss? a. profit of $100b. profit of $200c. profit of $320d. profit of $20

How does knowing about supply and demand

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

What is the correct percentage of texas teachers charged with ethics violations each year?