Anna operates a consignment shop where she sells cloths for women and children. The average consignments sold per month is 1000. The average material cost and the selling price of each consignment is $8 and $20, respectively.
The monthly fixed cost to run this business is given below:
Rental cost: $750
Utilities: $150
Advertising: $35
Insurance: $100
Labor cost: $4000
a. Using a spreadsheet model, construct a one-way data table with number of consignments sold per month as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value. Vary the number of consignments sold per month from 400 to 1200 in increments of 100. In which interval does breakeven occur?
b. Use the appropriate Excel tool to find the exact breakeven point

Question

Anna operates a consignment shop where she sells cloths for women and children. The average consignments sold per month is 1000. The average material cost and the selling price of each consignment is $8 and $20, respectively.
The monthly fixed cost to run this business is given below:
Rental cost: $750
Utilities: $150
Advertising: $35
Insurance: $100
Labor cost: $4000
a. Using a spreadsheet model, construct a one-way data table with number of consignments sold per month as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value. Vary the number of consignments sold per month from 400 to 1200 in increments of 100. In which interval does breakeven occur?
b. Use the appropriate Excel tool to find the exact breakeven point
​

Quizplus · Accepted Answer

The Answer of Anna operates a consignment shop where she sells cloths for women and children. The average consignments sold per month is 1000. The average material cost and the selling price of each consignment is $8 and $20, respectively.
The monthly fixed cost to run this business is given below:
Rental cost: $750
Utilities: $150
Advertising: $35
Insurance: $100
Labor cost: $4000
a. Using a spreadsheet model, construct a one-way data table with number of consignments sold per month as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value. Vary the number of consignments sold per month from 400 to 1200 in increments of 100. In which interval does breakeven occur?
b. Use the appropriate Excel tool to find the exact breakeven point
​

Anna Operates a Consignment Shop Where She Sells Cloths for Women