Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup oflemonade is $0.20.a. Given her other assumptions, what level of sales volume will enable Julie to break even?b. Given her other assumptions, discuss how a change in sales volume affects profit.c. Given her other assumptions, discuss how a change in sales volume and variable cost jointly affect profit.d. Use Excel’s Formula Auditing tools to show which cells in your spreadsheet affect profit directly.

Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup oflemonade is $0.20.a. Given her other assumptions, what level of sales volume will enable Julie to break even?b. Given her other assumptions, discuss how a change in sales volume affects profit.c. Given her other assumptions, discuss how a change in sales volume and variable cost jointly affect profit.d. Use Excel’s Formula Auditing tools to show which cells in your spreadsheet affect profit directly.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 40P

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