Essentials of Business Analytics 1st Edition by Jeffrey Camm,James Cochran,Michael Fry,Jeffrey Ohlmann ,David Anderson

Exercise 3

Use the spreadsheet model constructed to answer Problem 1 to answer this problem.
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, that is, breakeven is when total revenue 5 total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of production volume does breakeven occur
b. Use Goal Seek to find the exact breakeven point. Assign Set cell: equal to the location of profit, To value: 5 0, and By changing cell: equal to the location of the production volume in your model.