Check My Work Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost = $13,000 Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Production Volume = 12,000 Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur? to units (b) Use Goal Seek to find the exact breakeven point. Assign Set cell: equal to the location of profit, To value: = 0, and By changing cell: equal to the location of the production volume in your model. Check My Work T3 plans to sell single-user access to the book for $52. (a) Build a spreadsheet model in Excel to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,600 copies? For subtractive or negative numbers use a minus sign. (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to test the sensitivity of profit to demand. Breakeven occurs where profit goes from a negative to a positive value, that is, breakeven is where total revenue = total cost yielding a profit of zero. In which interval of demand does breakeven occur? (i) Breakeven appears in the interval of 3,200 to 3,400 copies. (ii) Breakeven appears in the interval of 3,600 to 3,800 copies. (iii) Breakeven appears in the interval of 3,800 to 4,000 copies. (iv) Breakeven appears in the interval of 4,000 to 4,200 copies. Option (ii) (c) Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,600 copies. If required, round your answer to two decimal places. (d) Consider the following scenarios: Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 $6 $9 $7 $10 $11 Variable Cost/Book Access Price $52 $42 $48 $45 $50 Demand 1,500 2,200 5,000 5,500 1,000 For each of these scenarios, the fixed cost remains $170,000. Use Scenario Manager to generate a summary report that gives the profit for each of these scenarios. Which scenario yields the highest profit? Which scenario yields the lowest profit? For subtractive or negative numbers use a minus sign. Scenario 3 yields the highest profit of $ Scenario 5 yields the lowest profit of $