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company that produces cleaning products is co nsidering a proposal to begin production of a new detergent that would cost $1 a bottle to make
company that produces cleaning products is considering a proposal to begin production of a new detergent that
would cost $1 a bottle to make and distribute, and retail for $2.19 a bottle. Fixed cost for the operation would be
$3000 a week. Assume that all output can be sold.
(a) What would be the total cost, revenue and profit for a weekly
volume of 10,000 bottles?
(b) What is the break-even volume?
(c) Set the problem in Excel, and use Goal Seek to confirm your
answer in parts (a) and (b).
(d) Suppose the company has a goal to make a weekly profit that
is at least 25% of the revenue. What level of output satisfies
this goal? Use the Excel Goal Seek to answer this question, and
submit your printo
would cost $1 a bottle to make and distribute, and retail for $2.19 a bottle. Fixed cost for the operation would be
$3000 a week. Assume that all output can be sold.
(a) What would be the total cost, revenue and profit for a weekly
volume of 10,000 bottles?
(b) What is the break-even volume?
(c) Set the problem in Excel, and use Goal Seek to confirm your
answer in parts (a) and (b).
(d) Suppose the company has a goal to make a weekly profit that
is at least 25% of the revenue. What level of output satisfies
this goal? Use the Excel Goal Seek to answer this question, and
submit your printo
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