Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 3-12A (Algo) Conducting sensitivity analysis using a spreadsheet LO 3-5 Use the below table to answer the following questions. Selling Price = $37.00

image text in transcribedimage text in transcribedimage text in transcribed

Exercise 3-12A (Algo) Conducting sensitivity analysis using a spreadsheet LO 3-5 Use the below table to answer the following questions. Selling Price = $37.00 Variable 2,600 3,600 Fixed Cost Cost Sales Volume 4,600 Profitability 5,600 6,600 $47,200 13 $15,200 $39,200 $63,200 $87,200 $111,200 47,200 14 12,600 35,600 58,600 81,600 104,600 47,200 15 10,000 32,000 54,000 76,000 98,000 57,200 13 5,200 29,200 53,200 77,200 101,200 57,200 14 2,600 25,600 48,600 71,600 94,600 57,200 15 - 22,000 44,000 66,000 88,000 67,200 13 (4,800) 19,200 43,200 67,200 91,200 67,200 14 (7,400) 15,600 38,600 61,600 84,600 67,200 15 (10,000) 12,000 34,000 56,000 78,000 Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Vernon projects the following data for Delatine: sales, 4,600 bottles; fixed cost, $47,200; and variable cost per unit, $15. c. Vernon is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an opportunity to decrease variable cost per unit to $13 if it agrees to conditions that will increase fixed cost to $57,200. Volume is expected to remain constant at 4,600 bottles. Determine the effects on the company's profitability if this opportunity is accepted. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. Sales volume Variable cost per unit Fixed cost bottles Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the expected profit if Vernon projects the following data for Delatine: sales, 4,600 bottles; fixed cost, $47,200; and variable cost per unit, $15. Expected profit Required A Required B Required C Vernon is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an opportunity to decrease variable cost per unit to $13 if it agrees to conditions that will increase fixed cost to $57,200. Volume is expected to remain constant at 4,600 bottles. Determine the effects on the company's profitability if this opportunity is accepted. Expected profit would by Show less

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

Cornerstones of Financial and Managerial Accounting

Authors: Rich Jones, Mowen, Hansen, Heitger

1st Edition

9780538751292, 324787359, 538751290, 978-0324787351

More Books

Students also viewed these Accounting questions

Question

Graph one period of each function. y = 4 cos x

Answered: 1 week ago