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Newton Manufacturing produces scientific calculators. The fixed cost of facility rent, utility bill, and labor cost is estimated to be $230,000. Variable cost for producing calculators is estimated to be $7 per calculator.
The manufacturer plans to sell each calculator for $30.
a. Build a spreadsheet model to calculate the profit/loss for any given demand.
b. Use a data table to vary demand from 10,000 to 15,000 in increments of 500 to assess the sensitivity of profit to demand.
c. Use Goal Seek to calculate the demand that results in breakeven.
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