Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(1) Start on the left with the given inputs in the orange colored D-column cells. Write them down on paper as reference. Fixed costs do

(1) Start on the left with the given inputs in the orange colored D-column cells. Write them down on paper as reference. Fixed costs do not change. Now, vary the annual forecasted sales volume from 0 to 10,000 for each item, one at a time, keeping the other two items constant. (2) Complete (manually) the DATA table on the right by bringing your result in cell D-13 into the table, varying item 1 annual sales volume by 1000 units each time, keeping items 2 and 3 constant. (3) Repeat this entire process for item 2 and then item 3. (4) Draw a scattergram plot (see "Charts" option under "insert" on this Excel sheet) for each of the three items, using the completed column for each item in the data table. Connects the data points with a line. (5) Answer the sensitivity analysis question at the bottom of the spreadsheet.

DATA table (to be used to draw the three scatter diagrams)
Row Number of units forecasted breakeven point for sandwich ($) breakeven point for drink ($) breakeven point for potato ($)
1 0 61,875
2 1,000 65,000
3 2,000 67,500
4 3,000
5 4,000
6 5,000
7 6,000
8 7,000
9 8,000
10 9,000 76,765
11 10,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

6th Edition

0324655231, 978-0324655230

More Books

Students also viewed these Accounting questions

Question

=+a) Find the EV for his actions.

Answered: 1 week ago

Question

=+What would you say if the person were in front of you?

Answered: 1 week ago

Question

=+ How could you make it more engaging and entertaining?

Answered: 1 week ago