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Exercise 3-12A (Algo) Conducting sensitivity analysis using a spreadsheet LO 3-5 Use the below table to answer the following questions. Selling Price = $25.00 2,000
Exercise 3-12A (Algo) Conducting sensitivity analysis using a spreadsheet LO 3-5 Use the below table to answer the following questions. Selling Price = $25.00 2,000 6,000 Fixed Cost $ 22,000 22,000 22,000 32,000 32,000 32,000 42,000 42,000 42,000 Variable Cost 7 8 9 7 8 9 7 8 9 $ 14,000 12,000 10,000 4,000 2,000 Sales Volume 3,000 4,000 5,000 Profitability $32,000 $50,000 $68,000 29,000 46,000 63,000 26,000 42,000 58,000 22,000 40,000 58,000 19,000 36,000 53,000 16,000 32,000 48,000 12,000 30,000 48,000 9,000 26,000 43,000 6,000 22,000 38,000 $86,000 80,000 74,000 76,000 70,000 64,000 66,000 60,000 54,000 (6,000) (8,000) (10,000) Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Perez projects the following data for Delatine: sales, 4,000 bottles; fixed cost, $22,000; and variable cost per unit, $9. c. Perez 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 $7 if it agrees to conditions that will increase fixed cost to $32,000. Volume is expected to remain constant at 4,000 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 2,000 bottles Variable cost per unit Fixed cost Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the expected profit if Perez projects the following data for Delatine: sales, 4,000 bottles; fixed cost, $22,000; and variable cost per unit, $9. Expected profit
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