Question: Please form a spreadsheet model to calculate the BE quantity for the below problem: Consider a project where the intial investment (fixed cost) is $100,000.
Please form a spreadsheet model to calculate the BE quantity for the below problem: Consider a project where the intial investment (fixed cost) is $100,000. The variable cost of production is increamental as: Production upto 1000 units: $10.00 1000 < Production < 10,000. $9.00 Production more than 10,000. $7.50 Due to the demand elasticity of the product, the market price is a function of quantity sold as: $(30 - 0.001v) where v is the sales volume. Calculate the B-E volume for this investment project, under the assumptions that: Everything produced can be sold (but at a price calculated from the above formula) All other costs are negligible
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