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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