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The spreadsheet values outlined in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns E and F. Start by entering the initial values into columns B and C. Then a. If the selling price were increased by 10%, how many units would need to be sold to break even? 57,69275,00098,322107,143112,500 b. If the original selling price were decreased by 10%, how many units would need to be sold to break even? 57,69275,00098,322107,143112,500 c. If you hope to earn a target profit of $15,000, how many units would you have to sell? (Note: Use the "profit analysis" column in the spreadsheet.) 57,69275,00098,322107,143112,500 Marketing Analytics: Break-Even/Profit Analysis Instructions: Read the problem below and refer to the spreadsheet provided. The spreadsheet values highlighted in yellow can be manipulated in order to determine possible outcomes and answer the questions. You must answer the follow-up questions (a-e) correctly to receive full credit. Problem: This problem lets you see the dynamics of break-even analysis. The starting values (costs, revenues, etc.) for this problem are from the break-even analysis example in this chapter (see Exhibit 18-8). The first column computes a break-even point. You can change costs and prices to figure new break-even points (in units and dollars). The second column goes further. There you can specify target profit level, and the unit and dollar sales needed to achieve your target profit level will be computed. You can also estimate possible sales quantities, and the program will compute costs. sales, and profits. Use a spreadsheet to address these issues. d. If you hope to earn a target profit of $15,000, what would your total cost be? $90,000.00$94,000.00$115,714.29$120,000.00$135,000.00 e. Using the "profit analysis" column, if your target profit is $15,000 and your fixed costs increase to $35,000, what would your sales dollars need to be? $96,000.00$99,000.00$125,000.00$135,000,00$150,000.00
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