Question: I need help setting up . this excel sheet with this infomation and this example. chart A fabrication company must replace its widget machines and
I need help setting up this excel sheet with this infomation and this example. chart
A fabrication company must replace its widget machines and is evaluating the capabilities of two available machines. Machine A would cost the company $ in fixed costs for the first year. Each widget using machine A would have a variable cost of $ Machine B would have a fixed cost of $ and a variable cost of $ A would have the capacity of making widgets per year, which is double the capacity of Machine B
Answer the following questions:
If Widgets sell for $ each, find the Break Even point for each machine.
If the demand for widgets is units then which machine will be selected? Why?
hints: Use the Break Even template attached. One for machine A and one for Machine B
Enter the fixed cost and variable cost and let it autocalcualte. Then use Goal Seek to find the break even point for both Machine A and B
Then Copy Both template and paste them next to them. you should have a total of templates on each sheet
Then change the number of units to for each machine and watch Excel recalculate the profit based on that volume
I am looking for answers.
Break even for A & B Total Profit for A & B and then which machine you would choose.
There should be templates and answers under them.
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