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QUESTION

The Gatson manufacturing company has estimated the following components for a new product. Fixed cost = $50,000 Material cost per unit = $2.15 Labor...

The Gatson manufacturing company has estimated the following components for a new product. 

Fixed cost = $50,000 Material cost per unit = $2.15 Labor cost per unit = $2.00 Revenue per unit = $7.50 

Round your answer to the nearest whole number. 

1. Using a spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product? 

2. Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit is zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of production volume does breakeven occur?  

3. Using the appropriate Excel tool, find the exact breakeven point.  

Please interpret the results and solve using excel.

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