Problem: Roxie's Surf Shop is expanding their product line, adding a high end surf board to their existing basic product.
Their fixed costs for the equipment needed for the new boards is $5300 per month.
The new board will cost $287 per board and they can be sold for $425.
Required:
- How many new boards per month will they need to sell to breakeven quantity per month?
- If the fixed costs are reduced to $4800 per month what is the new breakeven quantity?
- If the fixed costs stay at $4800 and they want to have at least $1000 per month in profit how many boards should they sell?
- Could the answers be supplied in excel? I need the backup to verify the answers.