Cox Electric makes electronic components and has estimated the following for a new design of one of its products.

• Fixed Cost = $12,000
• Material Cost per Unit = $0.17
• Labor Cost per Unit = $0.12
• Revenue per Unit = $0.66

Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue.

(a)

Build an influence diagram that illustrates how to calculate profit.

(b)

Using mathematical notation similar to that used for Nowlin Plastics, give a mathematical model for calculating profit. (Write your answer in terms of the following variables q = Production Volume (quantity produced), R = Revenue Per Unit,FC = the Fixed Costs of Production, MC = Material Cost per Unit, LC = Labor Cost per Unit, and P(q) = Total Profit for producing (and selling) q units.)

P(q) =

(c)

Implement your model from part (b) in Excel using the principles of good spreadsheet design.

	A	B	C
1	Cox Electric Breakeven Analysis
2
3	Parameters
4	Revenue per Unit	$0.66
5	Fixed Costs	$12,000.00
6	Materials Cost per Unit	$0.17
7	Labor Cost per Unit	$0.12
8
9
10	Model
11	Production Volume
12
13	Total Revenue	---Select--- =B4 =B11*(B4B6) =B11*B4B5 =B11*(B4B6B7) =B11*B4
14
15	Materials Cost	---Select--- =B11*B6 =B11*(B6+B7)+B5 =B11*(B6+B7) =B11/B6 =B6
16	Labor Cost	---Select--- =B6*B7 =B11*B7 =B7 =B7/B6 =B4B7
17	Fixed Cost	---Select--- =IF(B11 =IF(B11>0,B5,0) =IF(B11 =IF(B5>0,B11,0) =IF(B11>0,0,B5)
18	Total Cost	---Select--- =SUM(B15:B16) =SUM(B11:B17) =SUM(B4:B7) =SUM(B15:B17) =SUM(B11:B17)
19
20	Profit	---Select--- =B18B4 =B4B6B7 =B13B17 =B13B18
21

(d)

If Cox Electric makes 13,000 units of the new product, what is the resulting profit (in dollars)?

$

- Rend coir m stztar coes from notik revence. Q. (1) FC= the Fived Costs of Peoduction, AC= Menterial Cast per Uni, tC= Lator Cost per tinit, and A(q)= (c) Implement your model from nart (b) in Excel uing the prinoples of sood spreadsheet design. \begin{tabular}{|c|c|c|c|c|} \hline & A & B & & c \\ \hline 1 & \multicolumn{3}{|c|}{ Cor Electric Broukrvin Analyain } & \\ \hline \multicolumn{5}{|l|}{2} \\ \hline 2 & Partmulers & & & \\ \hline 4 & Revenue per Unil & 5056 & & \\ \hline 5 & Fined Conss & 51200000 & & \\ \hline 6 & Mutenis Cesk per Unt & so4 & & \\ \hline & Labor Coot per Lhit & 500 & & \\ \hline \\ \hline \multicolumn{5}{|l|}{5} \\ \hline 18 & Noder & & & \\ \hline s1 & Probickion vilise & & & \\ \hline \multicolumn{5}{|l|}{12} \\ \hline 11 & Treal Fevenes & -Slever- & 0 & \\ \hline \multicolumn{5}{|l|}{14} \\ \hline 18 & Matninan Cent & & & \\ \hline 46 & Laber Ceel & sin1 - d & & \\ \hlinen & Fined Ceat & -seven- & 0 & \\ \hline 11 & Total Ciet & -siltat & & \\ \hline \multicolumn{5}{|l|}{} \\ \hline 24 & Prote & Seliect- & & \\ \hline 21 & & & & \\ \hline \end{tabular} (6) If Cor Electric makes 13,000 unis of the new product, what is the resulting prote (in dolarsy? Neod Help