A company records the following components of fixed and variable costs for a product. Fixed Cost (in
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A company records the following components of fixed and variable costs for a product.
Fixed Cost
(in dollars): Plaint Maintenance - 15,000 Salaries - 40,000 Depreciation - 100,000 Rent - 8,000 Manufacturing expenses - 12,000 Advertising - 5,000 Administrative expenses - 20,000 Variable Cost per unit: Labor - 3.00, Materials - 5.00, Sales Commission - 2.00 Assuming Sales Price per unit = $15, develop a spreadsheet model to calculate the break-even point using the above. Design your spreadsheet using effective spreadsheet-engineering principles.
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