Good evening ,

In this question I don`t know the 4th step/question. I stared to work on it But I am not sure what formula I should use and how it goes. Can you please help?

Thank you,

In the following example, assume you own a small company that has developed a new exercise devicecalled "The Strider"that tells someone how far they have walked, how many calories they have burned and how many paces per mile they have tallied. Assume the following facts.

• The machine that makes the device was purchased for $11,500.
• The microprocessors, the plastic case materials and the labor needed to assemble it costs $15 for each
• device.
• You have decided to sell the product directly to the consumer through a website promoted through ads.

The price you intend to charge each buyer for the "Strider" is $42.

Before you market the product, you decide to create a spreadsheet to estimate the revenues, costs, profits and "Breakeven Point." Go to the "Excel_Homework" and click on the tab/worksheet labeled "Breakeven Analysis." Create a breakeven analysis table for "The Strider".

Note that the Breakeven Point is in units and should therefore be rounded. You should set up the spreadsheet with the appropriate formulas to change the price, cost and sales volume quickly.

Answer the following questions:

1. Whatareyourrevenues,totalexpensesandprofitifyousell10,000Striders? 2. HowmanyStridersdoyouneedtosellat$42tobreakeven?

3. Whatareyourrevenues,expensesandprofitifyousell15,000Stridersbylowering the price to $35 each?

4. HowmanyStridersdoyouneedtosellat$42tomake$500,000inprofits?(Findthe answer by using the formula to calculate the profit, i.e., Profit = Revenue - Total Cost.)

Type All Answers on your Excel Spreadsheet that you will submit.

Units sold $10,000

Sales price $42.00

Revenue $420,000

Fixed Cost $11,500

Variable cost per unit $15.00

Total Cost $161,500

Profits $ 258,500

Break even point $ 426

Units Sold $15,000

Sales price per unit $35.00

Revenue $525,000

Fixed Cost $11,500

Variable cost per unit $15.00

Total Cost $236,500

Profits $288,500

Break even point 575

4.th step

Desirable Profit $500,000

Fixed Cost $11,500

Desired contribution $511,500