Chapter 5: Using Excel to Make Decisions at Current Designs Part 1
Data
$250 per kayak
$100 per kayak
Finishing kit (seat, rudder, ropes, etc.)
$170 per kayak
$420 per kayak
Selling and administrative expenses—variable
$400 per kayak
Selling and administrative expenses—fixed
$119,700 per year
Manufacturing overhead—fixed $240,000 per year
Selling price per unit $2,000 per kayak
Profit desired $270,600
Required
Follow the step-by-step directions to perform cost-volume-profit analysis.
(a) 250$
100
(c) Break-even point 545 units
(f) Number of units 0 545 1000
Sales revenue –$ 1,090,000$ 2,000,000$
Kevlar®
Resin and supplies
Kevlar®
Resin and supplies
Labor
$-
$1,500,000
$2,000,000
$2,500,000
0 200 400 600 800 1000 1200
Sales revenue
Finishing kit (seat, rudder, ropes, etc.)
Chapter 5: Using Excel to Make Decisions at Current Designs Part 2
Data
$250 per kayak
$120 per kayak
Finishing kit (seat, rudder, ropes, etc.)
$170 per kayak
$420 per kayak
Selling and administrative expenses—variable
$400 per kayak
Required
Follow the step-by-step directions to perform cost-volume-profit analysis and to create a break-even chart.
(a) 250$
(b) Contribution margin per unit 640$
(c) Break-even point 448 units
(f) Number of units 0545 1000
Sales revenue –$ 1,090,000$ 2,000,000$
Total fixed costs 286,720 286,720 286,720
Kevlar®
Resin and supplies
Labor
Kevlar®
$2,000,000
$2,500,000
Selling and administrative expenses—fixed