Given the following information regarding a production and distribution system. The total fixed costs are equal to
Question:
Given the following information regarding a production and distribution system. The total fixed costs are equal to 22300 dollars. The variable cost per unit of product is equal to 460 dollars. The linear demand curve intercept the price axis at 1820 dollars. The slope of the linear demand curve is -13.
1. At around what quantity of sales is the revenue maximized?
The potential answers are:
A: 80 units.
B: 75 units.
C: 161 units.
D: 160 units.
E: 70 units.
2. At around what quantity of sales do you have the first break-even point (from loss to profit)?
The potential answers are:
A: 11 units.
B: 17 units.
C: 20 units.
D: 22 units.
E: 13 units.
3. At around what quantity of sales do you have the second break-even point (from profit to loss)?
The potential answers are:
A: 84 units.
B: 85 units.
C: 83 units.
D: 97 units.
E: 76 units.
4. At around what volume of sales is the total profit maximized?
The potential answers are:
A: 80 units.
B: 46 units.
C: 62 units.
D: 47 units.
E: 52 units.
How can I solve this using a Excel Spreadsheet?
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso