Question
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
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. Given her other assumptions, what level of sales volume will enable Julie to break even?
b. Given her other assumptions, discuss how a change in sales volume affects profit.
c. Givenherotherassumptions, discuss how average sales volume and variable cost jointly affect profit.
d. Use Excels Formula Auditing tools to show which cells in your spreadsheet affect profit directly.
Please you Excel!
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