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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 Balance, Inc., in Exercise 3-26.
Required
Using the Goal Seek function in Microsoft Excel,
a. What number must Balance, Inc., sell to break even?
b. What number must Balance, Inc., sell to make an operating profit of $8,000 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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