Problem 4: The Gatson manufacturing company has estimated the following components for a new product. Fixed cost
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Problem 4: The Gatson manufacturing company has estimated the following components for a new product.
Fixed cost = $50,000 Material cost per unit = $2.15 Labor cost per unit = $2.00 Revenue per unit = $7.50
(a) Using this data, build an Excel model that calculates profit. Use the principles of good spreadsheet design.
(b) Using the spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product?
(c) Using Goal Seek, determine what price Gatson must charge in order to make a profit of $250,000 while still making 70,000 units.
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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