Cox Electric makes electronic components and has estimated the following for a new design of one of
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Fixed Cost = $10,000
Revenue per unit = $0.65
Material cost per unit = $0.15
Labor cost per unit = $0.10
These data are given in the spreadsheet Cox Electric. Also in the spreadsheet in row 14 is a profit model that gives the profit (or loss) for a specified volume (cell C14).
a. Use the Show Formula button in the Formula Auditing Group of the Formulas tab to see the formulas and cell references used in row 14.
b. Use the Trace Precedents tool to see how the formulas are dependent on the elements of the data section.
c. Use trial and error, by trying various values of volume in cell C14, to arrive at a breakeven volume.
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Related Book For
Quantitative Methods For Business
ISBN: 148
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
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