Question
Please answer using excel and showing formulas. Thank you Problem 1 You're planning to manufacture a new brand of special purpose GPUs for machine learning
Please answer using excel and showing formulas. Thank you
Problem 1
You're planning to manufacture a new brand of special purpose GPUs for machine learning applications. The key question is whether sales will be strong enough to at least break even. Problem 1.2 sheet lists necessary inputs in yellow cells. Answer the following questions:
(a) What is the accounting profit when unit sales are 1,100,000 units? (3 points)
(b) At what level of unit sales you will break even? (3pts)
(c,) How can you use Goal Seek to calculate break even level of unit sales? (7 points)
Set cell
To value:
By changing cell:
(d) Create a graph that is going to show fixed cost, variable cost, total cost, sales revenue and accounting profit as a function of unit sales. Label X-axis as "Unit Sales", title the graph "Break even analysis", make sure that labels describing each relationship are displayed on the graph. Create graph on a separate sheet (7 points) (e) Complete Data table in Problem 1.2 sheet and describe how you use Table tool to complete it (7 points)
Row input cell
Column input cell
Special purpose GPUs project (problem 1.2)
Inputs:
Fixed Costs $52,000,000
Sales Revenue / Unit $2,700
Variable Costs / Unit $2,600
Calculating accounting profit:
Unit Sales
Sales Revenue
Variable Costs
Gross Margin Fixed Costs
Accounting Profit
Data Table: Sensitivity of Costs, Revenues, and Acct. Profit to Unit Sales Input Values for Unit Sales
0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000
Fixed Costs
Variable Costs
Total Costs
Sales Revenue
Accounting Profit
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