A small manufacturing operation produces wardrobes. The annual fixed costs incurred are $108,000. The wardrobes are sold for $1500 each. For this question set, use the following formulas and information:
[Total Profit] = [Total Revenue] - [Total Cost]
[Total Revenue] = [Production] x [Unit Revenue]
[Total Cost] = [Production] x [Variable Unit Cost] + [Fixed Costs]
[Break Even Point] = [Fixed Cost] / ([Unit Revenue]-[Unit Variable Cost])
|
Component
|
Unit Cost
|
# Needed
|
|
Door Panels
|
100
|
4
|
|
Hinges
|
20
|
20
|
|
Shelf
|
25
|
8
|
|
Base
|
70
|
1
|
|
Top
|
70
|
1
|
1. Create a data table that shows what total profit would be if the company produced 100 to 1000 wardrobes, in increments of 50. You must use a data table structure to receive credit for this problem.
2. Create a scatter chart that displays the variable total profit (and no other variables) as a function of the number of wardrobes produced and sold. At low production quantities, total profit may be negative but should still be displayed. Label your chart axes appropriately.
3. What is the break-even point?