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In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different what if values
In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand.
A | B | C | |
1 | Profit Model | ||
2 | |||
3 | Data | What-IfDemand Values | |
4 | 20,000 | ||
5 | Unit Price ($) | 50 | 40,000 |
6 | Unit Cost ($) | 25 | 55,000 |
7 | Fixed Cost ($) | 550,000 | 60,000 |
8 | Demand | 60,000 | 65,000 |
9 | Quantity Produced | 55,000 | |
10 |
From the "what if" values, calculate the total cost when demand is 40,000.
A. $2,000,000 | |
B. $75,000 | |
C. $1,100,000 | |
D. $1,925,000 |
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