You're planning to manufacture a new brand of special purpose GPUs for machine learning applications.

The key question is whether sales will be strong enough to at least break even. Problem 1.2 sheet lists

necessary inputs in yellow cells. Answer the following questions:

 

a) What is the accounting profit when unit sales are 1,100,000 units

b) At what level of unit sales you will break even?

c) How can you use Goal Seek to calculate break even level of unit sales 

d) prepare graph showing fixed cost, variable cost, total cost, sales revenue and accounting profit as a function of unit sales. Label X-axis as "Unit Sales", title the graph "Break even analysis", make sure that labels describing each relationship are displayed on the graph. Create graph . 

Given Inputs

Fixed Costs $5,20,00,000

Sales Revenue / Unit $2,700

Variable Costs / Unit $2,600

e) Data Table: Sensitivity of Costs, Revenues, and Acct. Profit to Unit Sales

0 2,50,000 5,00,000 7,50,000 10,00,000 12,50,000 15,00,000

Fixed Costs ---

Variable Costs -

Total Costs

Sales Revenue

Accounting Profit

Input Values for Unit Sales

Complete the table above

Answer rating: 100% (QA)

a Accounting profit when unit sales are 1100000 units is calculated by subtracting total costs from ... View the full answer