Question: Questions: 1. Answer the questions below using the DSS model: a) When fixed cost is 1000, unit variable cost is 4, unit price is 10,

Questions: 1. Answer the questions below using the DSS model:

a) When fixed cost is 1000, unit variable cost is 4, unit price is 10, and sales quantity is 800,

what are the total cost, total revenue, net profit, and break-even quantity?

b) When fixed cost is 1500, unit variable cost is 6, unit price is 14, and sales quantity is 1000, what are the total cost, total revenue, net profit, and break-even quantity?

c) When fixed cost is 2000, unit variable cost is 10, unit price is 8, and sales quantity is 500,what are the total cost, total revenue, net profit, and break-even quantity?

2. Goal Seeking Analysis: Set Fixed Cost 500, Unit Cost 5, Sales Quantity 500; Set Cell: G10 (net profit) to Value: 2000, By Changing Cell: C8. What is the Unit Price?

a) With fixed cost of $700, unit variable cost of $6, and unit price of $9, what the sales quantity would be in order to make a net profit of $2,000?

b) With fixed cost of $700, unit variable cost of $6, what the unit price would be in order to have a break-even quantity of 100?

3. What-if Analysis: Low Cost Scenario: Fixed Cost (C4) = $500, Variable Cost (C6) = $2; High Cost Scenario: Fixed Cost (C4) = $1,500, Variable Cost (C6) = $8

a) With unit price of $6, what the break-even quantity would be under low-cost scenario?

b) With unit price of $6, what the break-even quantity would be under high-cost scenario?

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 General Management Questions!