Build the spreadsheet pictured in Exhibit 3.3. Be sure to use formulas that will automatically calculate profitability if fixed cost, variable cost, or sales volume is changed.
Spreadsheet Tip
1. The shading in column D and in row 6 can be inserted by first highlighting a section to be shaded, choosing Format from the main menu, then Cells, and then clicking on the tab titled Patterns, and then choosing a color for the shading. The shortcut method to accomplish the shading is to click on the fill color icon (it looks like a tipped bucket and is in the upper right area of the screen).

2. Similar to basic math rules, the order of calculation within a formula is multiplication and division before addition and subtraction. Therefore, if you wish to subtract variable cost from selling price and multiply the difference by units sold, the formula must be = (28 ˆ’ C8)*E5.
3. The quickest way to get the correct formulas in the area of E8 to I16 is to place the proper formula in cell E8 and then copy this formula to the entire block of E8:I16. However, the formulas must use the $ around the cell addresses to lock either the row or the column, or both. For example, the formula = 2*$B$8 can be copied to any other cell and the cell reference will remain B8 because the $ symbol locks the row and column. Likewise, $B8 indicates that only the column is locked, and B$8 indicates that only the row is locked.

$ Selling Price - 28.00 While And Sales Volume is 5,000 4,000 Then Profitabi ity Will Be 3. It 3,000 6,000 Fixed Cost Verioble Cost is 2,000 is 20,000 20,000 20,000 30,000 11 12 $14,000 $31,000 $48,000 $65,000 $82,000 44,000 40,000 38.000 34,000 30,000 28,000 24,000 20,000 12,000 10,000 4,000 2,000 28,000 25,000 21000 18 CO0 15,000 11,000 8.000 5000 76,000 70,000 72,000 55,000 60,000 45,000 62,000 56,000 50,000 60,000 55,000 6. 13 10 11 55,000 11 30,000 12 50,000 30,000 40,000 40,000 40,000 12 13 45,000 11 (6,000) (8.000) (10.000) 13 12 40.000 35,000 14 15 13 16 17 E MASheet Sheet heets/