Determine the sales level of the companys single product

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Reference no: EM13781453

The owner of a relatively small business is trying to determine the sales level of the company’s single product. The fixed cost for manufacturing this product is $24,000 per year. The unit cost of producing this product is $50. The owner believes that the unit selling price is best described by the expression: 125, 0.01?D, where D is the monthly demand for the product. Assume that sales of this company always equal the demand for its product each month. The demand (sales) for the product is 1600 units in this current month. The company wants to increase its profit by 20% in the next month. Use Goal Seek to find the sales level for the next month to reach this target on worksheet. Note that the square root can be calculated using the function of sqrt() in Excel.

Reference no: EM13781453

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