Build a spreadsheet using the following information: Input Data Plan A Plan B Pl
ID: 2724864 • Letter: B
Question
Build a spreadsheet using the following information:
Input Data
Plan A
Plan B
Plan C
Price (P)
$3.00
$4.00
$5.00
Variable costs (V)
$2.00
$3.50
$4.50
Fixed costs (F)
$15,000
$45,000
$25,000
Invested Capital
$65,000
$100,000
$150,000
Tax Rate (T)
40%
40%
40%
Use 3 economic demand scenarios: Great, Average, Poor
Find breakeven for each of the above Plans.
Choose your industry (something easy to research the demand one year out). Research the available ULV internet tools to determine your probabilities for each level of demand. Cite your source. Determine the amount of unit sales (within a range of zero – 100,000). Find expected values, standard deviation, coefficient of variation, EBIT, after tax, return on invested capital.
Input Data
Plan A
Plan B
Plan C
Price (P)
$3.00
$4.00
$5.00
Variable costs (V)
$2.00
$3.50
$4.50
Fixed costs (F)
$15,000
$45,000
$25,000
Invested Capital
$65,000
$100,000
$150,000
Tax Rate (T)
40%
40%
40%
Explanation / Answer
Break even sales in units = total fixed cost / (P – V)
Break even sales (Plan A) = 15,000/ (3-2)
= 15,000 units
Break even sales (Plan B) = 45,000/ (4-3.50)
= 90,000 units
Break even sales (Plan C) = 25,000/ (5-4.50)
= 50,000 units
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.