Breakeven Problems Instructions:

Work each problem in MS Excel using professional formatting.

5. Millard's Enterprises sells rubix cubes for $9 per cube. The fixed operating costs are 520,000, and the variable operating cost is $5 per cube. Recreate and fill out the tables provided by answering the following questions: (a) Calculate Millard's Enterprises EBIT with an estimated sales quantity of 8,000 cubes (b) Calculate EBIT for sales of 10,000 and 12,000 cubes, respectively (c) Calculate the percentage changes in cubes sold (with 8,000 cubes as the base level) and related percentage changes in EBIT when sales are 10,000 and 12,000 cubes respectively. (d) Based on the answer in part (c ), comment on the sensitivity of changes in EBIT in response to change in sales. Table 1 8,000 Units 10,000 Units 12,000 Units Sales Less: Variable costs Less: Fixed costs EBIT Table 2 Unit Sales 8,000 10,000 12,000 Percentage Change in unit sales Percentage Change in EBIT