Question:
Using Microsoft Excel to Perform CVP Analysis
Balance, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics:
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Sales price
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$ 1.00 per unit
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Variable costs
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0.20 per unit
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Fixed costs
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400,000 per month
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Required
Using the Goal Seek function in Microsoft Excel,
a. What number must Balance, Inc., sell to break even?
b. What number must Balance, Inc., sell to make an operating profit t of $8,000 per month?