Question: begin{tabular}{|l|rr|} hline Data Inputs: & & hline Unit sales & & 40,000 hline Selling price per unit & $ & 12.50 hline

 \begin{tabular}{|l|rr|} \hline Data Inputs: & & \\ \hline Unit sales && 40,000 \\ \hline Selling price per unit & $ & 12.50

\begin{tabular}{|l|rr|} \hline Data Inputs: & & \\ \hline Unit sales & & 40,000 \\ \hline Selling price per unit & $ & 12.50 \\ \hline Variable expense per unit & $ & 7.50 \\ \hline Total fixed expenses & $ & 180,000 \\ \hline \end{tabular} Contribution Format Income Statement \begin{tabular}{|l|lr|} \hline \multicolumn{3}{|c|}{ Margin of Safety } \\ \hline Actual sales (a) & $ & 500,000 \\ \hline Break-even sales (b) & $ & 450,000 \\ \hline Margin of safety in dollars (a) - (b) & $ & 50,000 \\ \hline Margin of safety percentage & & 10.00% \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Open the Excel file and go to the "Template" tab. 1. Using Goal Seek: a. Calculate the unit sales required to break even. b. Calculate the unit sales required to attain a target profit of $25,000. What would be the company's margin of safety (in dollars) at this level of sales? c. Calculate the selling price per unit required to attain net operating income of $30,000. d. Calculate the variable expense per unit required to attain net operating income of $30,000. e. Calculate the unit sales required to attain a margin of safety of $75,000. 2. Using Solver: a. Calculate the unit sales required to attain a margin of safety percentage of 15%. b. Restore the original values in your Excel file. Calculate the unit sales required to attain a profit margin of 8%. c. Restore the original values in your Excel file. Calculate the selling price per unit required to attain a profit margin of 10%. d. Restore the original values in your Excel file. Calculate the variable expense per unit required to attain a profit margin of 6%. Please enter the answers for part 1 and 2 on Answers Tab

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!