The breakeven point is the number of units that must be sold to make zero profits. To compute this, you must know the selling price, the fixed cost, and the variable cost per unit. Complete the break-even exercise below to apply the principles learned in this section.

Review Problem 1-23 (both a and b) in Quantitative Analysis.

Complete the problem:

Create a model to support each part of the problem;

Place each part of the problem in a separate worksheet within the same Excel document; and  

Provide appropriate documentation in your spreadsheet.