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cenario 2: Pete wants its for each product

cenario 2: Pete wants its for each product

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table and then determine the number of units for each product that should be produced (to the nearest thousand) to make each product line profitable. SCENARIO 2 Product A Product B Product C Units O Scenario 1 O Scenario 2 Operating Income (Loss) 0 $ 0 3. Based on your calculations above, which scenario creates the highest overall Operating Income for the company?
Transcribed Image Text:Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table and then determine the number of units for each product that should be produced (to the nearest thousand) to make each product line profitable. SCENARIO 2 Product A Product B Product C Units O Scenario 1 O Scenario 2 Operating Income (Loss) 0 $ 0 3. Based on your calculations above, which scenario creates the highest overall Operating Income for the company?
On the Data Tables - Student tab in your Excel spreadsheet, update the given information section of the Income Statement for Hello Company with the data below: Income Statement Units Price per unit. Variable expense per unit Total Fixed Costs SCENARIO 1 Product A Product B Product C Product A 42,000 $ 12.00 $ 4.00 $20,000 Required: 2. Using the Data Table What-If Analysis tool in Excel, determine the Units and Operating Income (Loss) for each product based on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 51,000 units.) Units Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this analysis using a two variable data table. Product A can vary between 39,000 units and a maximum of 44,000 units. Product B can vary between 5,000 units and a maximum of 10,000 units. Both Products A and B are manufactured in 1,000-unit increments. The production level of Product C is the same each month at 2,000 units. Operating Income (Loss) 0 $ Product B 7,000 $ 8.00 $ 2.00 $40,000 Product C 2,000 $ 50.00 $ 15.00 $10,000 0 Max Capacity 51,000
Transcribed Image Text:On the Data Tables - Student tab in your Excel spreadsheet, update the given information section of the Income Statement for Hello Company with the data below: Income Statement Units Price per unit. Variable expense per unit Total Fixed Costs SCENARIO 1 Product A Product B Product C Product A 42,000 $ 12.00 $ 4.00 $20,000 Required: 2. Using the Data Table What-If Analysis tool in Excel, determine the Units and Operating Income (Loss) for each product based on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 51,000 units.) Units Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this analysis using a two variable data table. Product A can vary between 39,000 units and a maximum of 44,000 units. Product B can vary between 5,000 units and a maximum of 10,000 units. Both Products A and B are manufactured in 1,000-unit increments. The production level of Product C is the same each month at 2,000 units. Operating Income (Loss) 0 $ Product B 7,000 $ 8.00 $ 2.00 $40,000 Product C 2,000 $ 50.00 $ 15.00 $10,000 0 Max Capacity 51,000
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