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Question 3: Excel Ouestion: Halsey Corporation manufactures products that have variable costs of $60 per unit. Its fixed cost amounts to $360,000. It sells the
Question 3: Excel Ouestion: Halsey Corporation manufactures products that have variable costs of $60 per unit. Its fixed cost amounts to $360,000. It sells the products for $90 each. Conduct a sensitivity analysis on an excel file, on the first sheet manually, (fixed cost and variable cost being on the vertical axis and sales volume being on the horizontal axis) considering: 4 levels of fixed cost: 300,000-360,000-430,000-500,000. 5 levels of variable cost: 50-55-60-65-70 5 levels of sales volume: 8,000-10,000-12,000-14,000-16,000. Then conduct the same sensitivity analysis, on the second sheet using what if analysis, (sales volume being on the horizontal axis and variable cost being on the vertical axis) considering: Fixed cost=360.000 21 levels of variable cost: starting from 50 till 70 5 levels of sales volume: starting from 8,000 and goes till 20,000 increasing 1,000 at each Comment on your findings. by comparing fixed cost, variable cost, and sales volume figures: What are the break-even points you observe on the manual sensitivity analysis table? ii. What can company do to increase its profitability?
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