1. Using the Goal Seek Tool find the Net Income breakeven point for both years changing the units sold while price remains fixed at $25.00 2. Using the Goal Seek Tool find the price each year that creates an income 1200 in 2018 and 2019 holding sales at 3500 units 2018 2019 Total Revenue 61436 63644 Cost of Goods Sold 46077 47733 Gross Profit 15359 15911 General & Admin 12,884 13,411 Depreciation 1250 1,250 Rent 650 650 Operating Expenses 14,784 15,311 EBIT 575 600 Interest Expense 575 600 Earnings Before Taxes 0 0 Income Tax Expense 0 0 Net Income 0 0 Units Sold 2,457 2,546 Price 25.00 25.00 Tax Rate 40.0% 40.0% Cost of Good Sold 75.0% 75.0%
1. Using the Goal Seek Tool find the Net Income breakeven point for both years changing the units sold while price remains fixed at $25.00 2. Using the Goal Seek Tool find the price each year that creates an income 1200 in 2018 and 2019 holding sales at 3500 units 2018 2019 Total Revenue 61436 63644 Cost of Goods Sold 46077 47733 Gross Profit 15359 15911 General & Admin 12,884 13,411 Depreciation 1250 1,250 Rent 650 650 Operating Expenses 14,784 15,311 EBIT 575 600 Interest Expense 575 600 Earnings Before Taxes 0 0 Income Tax Expense 0 0 Net Income 0 0 Units Sold 2,457 2,546 Price 25.00 25.00 Tax Rate 40.0% 40.0% Cost of Good Sold 75.0% 75.0%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. Using the Goal Seek Tool find the Net Income breakeven point
for both years changing the units sold while price remains fixed at $25.00
2. Using the Goal Seek Tool find the price each year that creates an income
1200 in 2018 and 2019 holding sales at 3500 units
| 2018 | 2019 | |
| Total Revenue | 61436 | 63644 |
| Cost of Goods Sold | 46077 | 47733 |
| Gross Profit | 15359 | 15911 |
| General & Admin | 12,884 | 13,411 |
| 1250 | 1,250 | |
| Rent | 650 | 650 |
| Operating Expenses | 14,784 | 15,311 |
| EBIT | 575 | 600 |
| Interest Expense | 575 | 600 |
| Earnings Before Taxes | 0 | 0 |
| Income Tax Expense | 0 | 0 |
| Net Income | 0 | 0 |
| Units Sold | 2,457 | 2,546 |
| Price | 25.00 | 25.00 |
| Tax Rate | 40.0% | 40.0% |
| Cost of Good Sold | 75.0% | 75.0% |
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