Question: Using the data given below: Set up a profit model for each location (A, B, C) in Excel similar to models done for Ch 5
Using the data given below:
Set up a profit model for each location (A, B, C) in Excel similar to models done for Ch 5
(Assume all units produced will be sold)
| Location | Fixed Cost | Variable cost per unit | Revenue per unit |
| A | $3000 | $1.90 | $2.65 |
| B | $8000 | $1.10 | $2.65 |
| C | $4500 | $1.55 | $2.65 |
a. Use your models and the Goal Seek tool in Excel to determine the break-even volume for each location
b. Create a graph that shows TOTAL COST vs VOLUME (all three options on one graph) for volumes ranging from 0 to 10000.
c. Provide an interpretation of your graph
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