Question & Answer: Hello, I need help with calculating Replacement Due to Vandalism Expense. Here is a scenario…..

Hello, I need help with calculating Replacement Due to Vandalism Expense. Here is a scenario. We have 2,880,000 panels installed at the end of the first year. This would mean 144,000 shopping carts would require a replacement panel. Assuming an even distribution by quarter over the year, each quarter would result in 36,000 panels being replaced at a cost of $223,920 and the printing of inserts will add an additional cost of $3,960 for a total replacement cost of $227,880. What is the Replacement Due to Vandalism Expense for each month (12 months). The amount of $18,990 is incorrect. Please help me to calculate. Thank you!

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Total replacement cost per quarter 227880
Number of months per quarter 3 months
Replacement cost per month 75960
(227880/3)

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