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
Section: Chapter Questions
Problem 1PS
Related questions
Question

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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