Question#1

1. [-I1 Points] CAMMBA410.E.002. MY NOTES I | ASK YOUR TEACHER I | PRACTICE ANOTHER Cox Electric makes electronic components and has estimated the following for a new design of one of Its products . Fixed cost = $21,875 - Material cost per unit = $0.17 - Labor cost per unit = $012 0 Revenue per unit = $0.64 Note that xed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all that it produces, prot is calculated by subtracting the xed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to nd the prot based on a given production level and use the spreadsheet model to answer these questions. (a) Construct a one-way data table with production volume as the column input and prot as the output. Breakeven occurs when prot goes from a negative to a positive value; that is, breakeven is when total revenue = the total cost, yielding a prot of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of production volume does breakeven occur? to units (b) Use Goal Seek to nd the exact breakeven polnt. Assign Set cell: equal to the location of prot, To value: 0, and By changing cell: equal to the location of the production volume in your model. units