Computation of Break-even-point in units.
Create a worksheet with a data table (Hint: look in the book for the data table)
for Sony Entertainment that analyzes the breakeven point for CD prices between $5.00 and $10.00 in .20 increments.
Break Even point = Fixed Expenses / (Price per unit - Expense per unit)
Fixed Expenses = $10,000,000 (name this cell and use in formula)
Price per unit = $5.00
Expenses per unit = $2.45
Name the cells for fixed expenses, Price per Unit, Expenses per unit, Breakeven point and use the names in the calculations.
Format money as currency.
Use conditional formatting to highlight when the breakeven point is less than 2,000,000 in the data table.
*** Use Goal seek to calculate Fixed Expenses if breakeven point is set to 3,000,000
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Sony Entertainment
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Fixed Expenses
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$10,000,000.00
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Expenses per unit
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$ 2.45
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Price per Unit
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$ 5.00
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Breakeven point
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Data Table for different Prices per Unit
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Price per Unit
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Breakeven Point
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$ 5.00
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$ 5.20
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