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Please use excel to solve I need answers and formulas. Cost-Volume Profit Analysis Shown below is last year's information relating to one unit (i.e., one
Please use excel to solve I need answers and formulas.
Cost-Volume Profit Analysis Shown below is last year's information relating to one unit (i.e., one box of chocolates) produced and sold by Sweetwater Candy Company: Unit selling price $25.00 Variable cost per unit $12.92 $110,400 Sweetwater's annual fixed costs: Required: (A) Calculate Sweetwater's annual break-even point last year in dollar sales and in number of units sold. Hint: Use the ROUNDUP formula for units. Based on last year's annual sales of 18,000 units, determine Sweetwater's annual operating income.. (B) (C) Management has set a goal for next year of achieving an annual operating income of $200,000. Based on last year's sales price, variable costs, and fixed costs, calculate the dollar amount and number of units of annual sales required for Sweetwater to earn an annual operating income of $200,000. Hint: Use the ROUNDUP formula for units. (D) The current manufacturing facilty has a maximum capacity of producing 20,000 units per year. The company is considering an expansion that will increase annual fixed costs by 10% and increase variable costs by 15%. The expansion will double production capacity to 40,000 units per year, and management estimates sales of 25,000 units next year. Assuming the sales price remains at $25 per unit and the expansion is implemented, compute: breakeven point in units and in dollars operating income. Hint: Use the ROUNDUP formula for units. (E) To be able to produce the budgeted sales volume of 25,000 units next year, management has decided to go ahead with the expansion plans. The expansion will begin in January and should only take about 8 weeks to complete. Is the expansion a good idea? ExplainStep by Step Solution
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