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Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher
Edition 3ISBN: 0073527114Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher
Edition 3ISBN: 0073527114Using Microsoft Excel to Perform CVP Analysis
Refer to the data for Cambridge, Inc., in Exercise 3-24.
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 of $6,000 per month?
Verified
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a.
An analysis tool called Goal Seek can be used to find the break-even volume and also the volume associated with a given desired profit level.
Calculate the break-even point using Goal Seek function in the following manner:
In the first step, Open a spreadsheet, enter the details of selling price per unit, variable cost per unit, fixed cost, desired profit and volume in the following manner:
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