Question
The Western Clothing Company produces designer denim jeans. Each month, the company pays $50,000 towards employees salaries, $30,000 for equipment maintenance, and $20,000 for utilities.
The Western Clothing Company produces designer denim jeans. Each month, the company pays $50,000 towards employees salaries, $30,000 for equipment maintenance, and $20,000 for utilities. It costs the company $80 to produce a pair of jeans, which then sells for $230.
a. Set up your spreadsheet model following the instructions provided for Western Clothing example.
b. Conduct analysis with Excel Goal Seek to identify the breakeven point, and compute the number of T-Shirts to be sold if the preset target - profit are $500 and $1000.
Profit level | $0 | $500 | $1,000 |
Units to be made |
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c. Conduct one-way sensitivity analysis with Excel Data Table, assume the number of units sold are from 100 to 500 with 100-unit increments.
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