To find the Break-Even quantity, which cell do you enter into the “Set cell:” bo
ID: 462133 • Letter: T
Question
To find the Break-Even quantity, which cell do you enter into the “Set cell:” box in the Goal Seek Tool?
D
E
7
Inputs
8
Unit Sales Price
$25
9
Annual Fixed Cost
$29,000
10
Unit Variable Cost
$12
11
12
Decision Variable
13
Quantity Produced and Sold
7200
14
15
Calculations and Outputs
16
Annual Total Revenue
17
Annual Variable Cost
18
Annual Fixed Cost
19
Annual Total Cost
20
Annual Profit (Loss)
E13
E9
E20
E17
D
E
7
Inputs
8
Unit Sales Price
$25
9
Annual Fixed Cost
$29,000
10
Unit Variable Cost
$12
11
12
Decision Variable
13
Quantity Produced and Sold
7200
14
15
Calculations and Outputs
16
Annual Total Revenue
17
Annual Variable Cost
18
Annual Fixed Cost
19
Annual Total Cost
20
Annual Profit (Loss)
Explanation / Answer
Annual Revenue = 7200 * 25 = 180000
Annual Variable Cost = 7200 * 12 = 86400
Annual fixed cost = 29000
Annual total cost = Annual var cost + Annual fixed cost = 115400
Annual profit = annual revenue - Annual Cost = (180000-115400) = 64600
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