Question:
Using Microsoft Excel to Perform CVP Analysis
Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics:
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Sales price
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$ 18 each
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Variable costs
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10 each
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Fixed costs
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20,000 per month
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Required
Using the Goal Seek function in Microsoft Excel,
a. What number must Cambridge sell to break even?
b. What number must Cambridge sell to make an operating profit t of $6,000 per month?