Anna operates a consignment shop where she sells cloths for women and children. The average consignments sold per month is 1000. The average material cost and the selling price of each consignment is $8 and $20, respectively
The monthly fixed cost to run this business is given below:
Rental cost: $750
Utilities: $150
Advertising: $35
Insurance: $100
Labor cost: $4000
- Using a spreadsheet model, construct a one-way data table with number of consignments sold per month as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value. Vary the number of consignments sold per month from 400 to 1200 in increments of 100. In which interval does breakeven occur?
- Use the appropriate Excel tool to find the exact breakeven point
Answer is a.
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