Question
In: Statistics and Probability
Cox Electric makes electronic components and has estimated the following for a new design of one...
Cox Electric makes electronic components and has estimated the following for a new design of one of its products:
Fixed Cost = $3,000
Material cost per unit = $0.15
Labor cost per unit = $0.10
Revenue per unit = $0.65
Production Volume = 12,000
Per-unit material and labor cost together make up the variable cost
per unit. Assuming that Cox Electric sells all it produces, build a
spreadsheet model that calculates the profit by subtracting the
fixed cost and total variable cost from total revenue, and answer
the following questions.
| a) | Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur? |
| ____to____ units |
| (b) | Use Goal Seek to find the exact breakeven point. Assign Set cell: equal to the location of profit, To value: = 0, and By changing cell: equal to the location of the production volume in your model. |
Solutions
orchestra answered 1 year agoRelated Solutions
Cox Electric makes electronic components and has estimated the following for a new design of one...
Cox Electric makes electronic components and has estimated the
following for a new design of one of its products:
Fixed Cost = $15,000
Material cost per unit = $0.15
Labor cost per unit = $0.10
Revenue per unit = $0.65
Production Volume = 12,000
Per-unit material and labor cost together make up the variable
cost per unit. Assuming that Cox Electric sells all it produces,
build a spreadsheet model that calculates the profit by subtracting
the fixed cost and total...
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Blast Inc. is considering outsourcing its production to one of its
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Equipment for immersion cooling of electronic components has an
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$40,000 after 15 years. For years 2 and 10, use DDB book
depreciation to determine: (a) the depreciation charge, and (b) the
book value.
I want an explanation for the steps
The Gatson manufacturing company has estimated the following components for a new product. Fixed cost =...
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 Round your answer to the nearest whole number.
1. Using a spreadsheet model, what will be the resulting profit
if the company decides to make 70,000 units of the new product?
2. Construct a one-way data table with production volume as the
column input and profit...
The Gatson manufacturing company has estimated the following components for a new product. Fixed cost =...
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 Round your answer to the nearest whole number.
1. Using a spreadsheet model, what will be the resulting profit
if the company decides to make 70,000 units of the new product?
2. Construct a one-way data table with production volume as the
column input and profit...
A manufacturer of electronic components acquires a cutting machine (CM) for $400,000. It is estimated that...
A manufacturer of electronic components acquires a cutting
machine (CM) for $400,000. It is estimated that the CM will reduce
operating costs by $128,000 annually since it is capable of cutting
through high- thickness green ceramic ware. It will be depreciated
using the MACRS method, with a recovery period of five years. The
project period is six years; it is estimated that the CM will have
a market value equal to 10% of its purchase price at the end of...
A manufacturer of electronic components acquires a cutting machine (CM) for $400,000. It is estimated that...
A manufacturer of electronic components acquires a cutting
machine (CM) for $400,000. It is estimated that the CM will reduce
operating costs by $128,000 annually, since it is capable of
cutting through high-thickness green ceramic ware. It will be
depreciated using the MACRS method, with a recovery period of five
years. The project period is six years; it is estimated that the CM
will have a market value equal to 10% of its purchase price at the
end of the...
A manufacturer of electronic components acquires a cutting machine (CM) for $400,000. It is estimated that...
A manufacturer of electronic components acquires a cutting
machine (CM) for $400,000. It is estimated that the CM will reduce
operating costs by $128,000 annually, since it is capable of
cutting through high-thickness green ceramic ware. It will be
depreciated using the MACRS method, with a recovery period of five
years. The project period is six years; it is estimated that the CM
will have a market value equal to 10% of its purchase price at the
end of the...
A random sample of 300 electronic components manufactured by a new machine is tested and 9...
A random sample of 300 electronic components manufactured by a
new machine is tested and 9 are found to be defective. The parts
using the old machine have a true defective proportion of four
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Krishna Electronics Pvt. Ltd. is a new venture that manufactures electronic components. The company produced the...
Krishna Electronics Pvt. Ltd. is a new venture that
manufactures electronic components. The company produced the
following income statement results in its first year of
operations:
Net Sales
Rs. 10,00,000
Cost of Goods Sold
- Rs. 6,50,000
Gross Profit
Rs. 3,50,000
General and Administrative
Expenses
- Rs. 2,40,000
Marketing Expenses
- Rs. 80,000
Depreciation
- Rs. 45,000
EBIT
- Rs. 15,000
Interest Expenses
- Rs. 35,000
Earnings Before Taxes
- Rs. 50,000
Taxes
Rs. 0
Net Earnings (Loss)
- Rs....
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