Figuring out what price will break even or make profit

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Reference no: EM132185737

A new merchandise item in the store has no historical sales data. Since the demand for this item is price sensitive, store manager is interested in figuring out what price will break even or make a profit. Simulating sales can help you realize the minimum number of items you need to sell in order to cover costs, given different price tags the store manager will put on the item.

Price can vary between $20 and $30. Between 50 and 200 units are expected to sell within the first month. Fixed costs of monthly sales estimated to be $1,000 and cost per item is $15. Build a table for this problem and simulate all possible combinations of price and units sold. Use proper cell referencing to enter one formula and copy it to the entire table. For the number of units sold use 10 unit increments (50, 60, 70, …200). Properly label all data entries. Do not use a number in formulas. Use cell reference.

Reference no: EM132185737

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