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1 Gormula: Multiply, Divide, Subtract; Cell Referencing 2 Student Work Area 4 PROBLEM 3 E3.2 -Using Excel for Breakeven Analysis 5 Scott Confectionery sells Stack-o-Choc

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1 Gormula: Multiply, Divide, Subtract; Cell Referencing 2 Student Work Area 4 PROBLEM 3 E3.2 -Using Excel for Breakeven Analysis 5 Scott Confectionery sells Stack-o-Choc candy bars, Information 6 concerning the candy bars is presented here. Required: Provide input into cells shaded in yellow in this template, using mathematical formulas with cell references to the Problem area and the work area as indicated. 8 $ 0.80 9 Selling price of each candy bar Variable cost per candy bar Total fixed costs 0.45 a. What is the contribution margin per unit for the Stack-o-Choc candy bar? 10 175,000 11 12 Contribution margin per unit 13 14 b. What is the contribution margin ratio for the Stack-o-Choc candy bar? 15 16 17 Contribution margin ratio 18 19 c. What is the breakeven point in units? In sales dollars? 20 21 Breakeven point in units 22 23 Breakeven point in sales dollars 24 25 d. If an increase in chocolate prices causes the variable cost per unit to increase, what will happen to the breakeven point? 26 27 28 New variable cost per unit $ 0.55 29 30 New breakeven point in units 31 32 New breakeven point in sales dollars 33 34 The breakeven point will by 35 units sales dollars. 36 and by 37 38 24

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