Question: An electronics firm manufactures items that has a variable cost of $1.00 per unit and a selling price of $1.50 per unit. Fixed costs are
An electronics firm manufactures items that has a variable cost of $1.00 per unit and a selling price of $1.50 per unit. Fixed costs are $14,000. Current volume is 25,000 units.
a. Construct a spreadsheet model for total profit. What is the current total profit if ?
b. Use Goal Seek to answer the following question: With a demand of 25,000 units, what is the selling price per unit that the electronics firm must charge to break even?
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