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Cox Electric makes electronic components and has estimated the following for a new design of one of its products. • Fixed cost = $14,025 • Material cost per unit = $0.17 • Labor cost per unit = $0.12 • Revenue per unit = $0.62 Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells a produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these 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; breakeven is when total revenue = the total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of productio does breakeven occur? 30000 to 40000 Enter a number. 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 your model. units

Cox Electric makes electronic components and has estimated the following for a new design of one of its products. • Fixed cost = $14,025 • Material cost per unit = $0.17 • Labor cost per unit = $0.12 • Revenue per unit = $0.62 Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells a produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these 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; breakeven is when total revenue = the total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of productio does breakeven occur? 30000 to 40000 Enter a number. 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 your model. units

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 30P
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Cox Electric makes electronic components and has estimated the following for a new design of one of its products. Fixed cost = $14,025 Material cost per unit = $0.17 Labor cost per unit = $0.12 Revenue per unit = $0.62 produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these questions. does breakeven occur? Enter a number. your model. units Cox Electric makes electronic components and has estimated the following for a new design of one of its products. . Fixed cost = $14,025 Material cost per unit = $0.17 • Labor cost per unit = $0.12. • Revenue per unit = $0.62 Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells a produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these 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; breakeven is when total revenue = the total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of productio does breakeven occur? 30000 to 40000 Enter a number. 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 your model. units
Transcribed Image Text:Cox Electric makes electronic components and has estimated the following for a new design of one of its products. Fixed cost = $14,025 Material cost per unit = $0.17 Labor cost per unit = $0.12 Revenue per unit = $0.62 produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these questions. does breakeven occur? Enter a number. your model. units Cox Electric makes electronic components and has estimated the following for a new design of one of its products. . Fixed cost = $14,025 Material cost per unit = $0.17 • Labor cost per unit = $0.12. • Revenue per unit = $0.62 Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells a produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these 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; breakeven is when total revenue = the total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of productio does breakeven occur? 30000 to 40000 Enter a number. 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 your model. units
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