Using Microsoft Excel to Perform CVP Analysis
Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics:
Sales price |
$ 18 each |
Variable costs |
10 each |
Fixed costs |
20,000 per month |
Required
Using the Goal Seek function in Microsoft Excel,
a. What number must Cambridge sell to break even?
b. What number must Cambridge sell to make an operating profit t of $6,000 per month?