Question

have the full amount of time to take the quiz. Question 5 16 pts You are provided with the partially completed spreadsheet for Connect, Inc., that sells cellular phones. E F H B G 1 C D A Variable Cost 1 Fixed Cost $50,000.00 $90.00 $80 $85 $90 $95 2 Variable cost 250 3 300 4 Selling price 5 350 Volume 400 6 Number of cell phones 300 450 7 00 Total Revenue 9 Total Cost 10 Total profit $0.00 11 12 Breakeven number of cells 299.99 For each of the questions, write just the item number and type in your answer: 1. The selling price is fit with 300 cell phones, the selling price must be Talling price that will enable Connect to make

Answer 1

1. Selling Price = $ 256.67

Breakeven number of cells	299.99
Breakeven units =	Total Fixed Cost / (Selling Price - Variable Cost)
Total Fixed Cost	50,000.00
Variable cost	90
299.99 =	50000/( SP-90)
Therefore Selling Price =	(50000/299.99)+90
=	256.67

2. Selling Price = $ 290.00

Calculation of Selling Price per unit to earn $ 10000 profit
a	Number of cell phones =	300.00
b	Expected Profit =	10,000.00
c	Fixed Cost=	50,000.00
d	Therefore Contribution=	60,000.00	b + c
e	Variable cost (for 300units x $90) =	27,000.00
f	Therefore Selling Price =	87,000.00	d + e
g	Selling price per unit=	290.00	f /a

4.

	Variable Cost
80	85	90	95
Volume	250	20,000.00	21,250.00	22,500.00	23,750.00
300	24,000.00	25,500.00	27,000.00	28,500.00
350	28,000.00	29,750.00	31,500.00	33,250.00
400	32,000.00	34,000.00	36,000.00	38,000.00
450	36,000.00	38,250.00	40,500.00	42,750.00
	Total Cost = VC + Fixed Cost
80	85	90	95
Volume	250	70,000.00	71,250.00	72,500.00	73,750.00
300	74,000.00	75,500.00	77,000.00	78,500.00
350	78,000.00	79,750.00	81,500.00	83,250.00
400	82,000.00	84,000.00	86,000.00	88,000.00
450	86,000.00	88,250.00	90,500.00	92,750.00