Question: I just need help with the excel goal seek function for this question Mark is very interested in beach sand in Florida. He wants to

I just need help with the excel goal seek function for this question

Mark is very interested in beach sand in Florida. He wants to start a business selling jars of beach sand to tourists. His sales price per jar is $2.50 and estimated costs are: Jar $.40 per item Cap $.10 per item Label $.30 per item Sales commission to retailers $.20 per item Excavating machine depreciation $500 per month Marks salary (President) $1,000 per month 1. a. What is Marks breakeven point for the year, in terms of both quantity and sales dollars on a pretax basis? b. Mark wants to make a target profit of $25,000 after tax for the year. How many jars of beach sand would he need to sell? Marks tax rate is 20%. c. If Mark can generate revenues of $50,000, what is his margin of safety in both dollars and sales quantity? d. If Mark generates revenues of 50,000 what is his operating leverage?

2. Use the Excel Goal seek function to prove that you calculated the correct numbers in 1 a. and 1b. above. Copy and paste the results to the calculations worksheet

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!