From the "what if" values, calculate the total cost when demand is 40,000. A. $2,000,000 B. $75,000 C. $1,100,000 D. $1,925,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item.
There are also different "what if" values that can help a manager to calculate costs and revenue with
variability in demand.
A
B
C
1
Profit Model
2
What-
3
Data
IfDemand
Values
4
20,000
5 Unit Price ($)
50
40,000
9
Unit Cost ($)
25
55,000
7
Fixed Cost ($)
550,000
60,000
8
Demand
60,000
65,000
9
Quantity Produced
55,000
10
From the "what if" values, calculate the total cost when demand is 40,000.
A. $2,000,000
B. $75,000
C. $1,100,000
D. $1,925,000
Transcribed Image Text:In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. A B C 1 Profit Model 2 What- 3 Data IfDemand Values 4 20,000 5 Unit Price ($) 50 40,000 9 Unit Cost ($) 25 55,000 7 Fixed Cost ($) 550,000 60,000 8 Demand 60,000 65,000 9 Quantity Produced 55,000 10 From the "what if" values, calculate the total cost when demand is 40,000. A. $2,000,000 B. $75,000 C. $1,100,000 D. $1,925,000
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