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Show all your work when answering the computation-based problems. Show screen shots of the spreadsheet you used to get the answer (indicating the answer!) and then Ctrl ~ to get a screen shot of your formulas. 1. SCR Manufacturing, LLC makes a variety of parts for the Machine Tool Industry. One of these parts (MIR 144) does not seem to be contributing to profits. The selling price of the part is $27.85, the variable cost is $19.00 and the Fixed Cost for this product is $152,000 per year. In the past fiscal year, 14,500 of this product was produced and sold. A. Construct a correct, flexible and documented spreadsheet model that will allow varying inputs and resulting revenue, costs and profit. Check the base case above to see if the company is losing on this part. B. Using the model and Goal Seek, find the break even quantity. C. Construct a data table and chart showing profit vs. quantity. D. The owner is trying to determine where to put her efforts in attempting to increase the profitability for MIR 144. Should she increase sales volume by 20% or reduce the variable cost by 15%. Using the model, determine which method would increase profitability more. Show your calculations that helps to answer the question.
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