Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup of lemonade is $0.20.

a. Use goal seek

• given her other assumptions, what level of sales volume will enable Julie to break even?

b. Use a one way data table

• given her other assumptions, discuss how a change in sales volume affects profit

c. Use a two way data table

• given her other assumptions discuss how a change in sales volume and variable cost jointly affect profit

d. Use excels formula data auditing tools to show which cells in your spreadsheet affect profit directly

(so far I have the following)

fixed cost $50

quantity sold 300

unit price $0.50

unit cost $0.20

contribution per cup $0.30

current profit $40 (is this right? 300x.30-50)