Homework Help is Here – Start Your Trial Now!
Business
Operations Management
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.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS