Annie Bs Homemade Ice Cream is an ice cream shop in Asheville, NC Annie's Homemade currently owns one push cart along with a
branded tent to facilitate offsite sales. The company is considering buying a second push cart and tent for $ to expand its off
site sales opportunities. Because the company's cargo trailer has the capacity to transport two push carts, there is no need to buy an
additional trailer at this time. Annie's provided the following estimates to assist with analyzing the investment in an additional push cart:
Required:
What is the net cash inflow for one additional offsite event?
Note: Round your answers to decimal places.
Answer is complete and correct.
What is the net cash inflow per month, assuming six events per month?
Answer is not complete.
Net cash inflow per month
What is the second push cart's payback period in months, assuming six events per month?
Annie Bs Homemade Ice Cream is an ice cream shop in Asheville, NC Annie's Homemade currently owns one push cart along with a branded tent to facilitate offsite sales. The company is considering buying a second push cart and tent for $ to expand its offsite sales opportunities. Because the companys cargo trailer has the capacity to transport two push carts, there is no need to buy an additional trailer at this time. Annie's provided the following estimates to assist with analyzing the investment in an additional push cart:
Additional sales events per month in June, July, August, and September
Average number of servings sold per event
Selling price per serving $
Ingredients and packaging cost per serving $
Average time for manager to make one batch of servings of ice cream hours
Average time for employees to prepackage one serving of ice cream minutes
Pickup truck diesel fuel, oil, and diesel exhaust fluid expenses $ per mile
Average duration of each event including drive time hours
Average number of employees working at each event
Hourly wage rate for managers $
Hourly wage rate per employee $
Average roundtrip mileage to each sales event miles
Required:
What is the net cash inflow for one additional offsite event?
Note: Round your answers to decimal places.
What is the net cash inflow per month, assuming six events per month?
What is the second push cart's payback period in months, assuming six events per month?