The formula to calculate the Vending Machine Profit is:
\[ Pv = AP \cdot Q - RC \]
Where:
Vending machine profit refers to the net earnings generated from a vending machine after accounting for the costs associated with operating the machine. This includes the revenue from items sold minus the rental cost of the vending machine. Calculating this profit helps in understanding the financial viability and performance of the vending machine business.
Let's say the average price per item sold (AP) is $2, the average number of items sold per month (Q) is 500, and the vending machine rental cost (RC) is $200 per month. Using the formula:
\[ Pv = 2 \cdot 500 - 200 = 800 \, \text{\$ per month} \]
So, the vending machine profit (Pv) would be $800 per month.