I have some problem solving break even in spreadsheet, If anyone would be kind enough to help me I would be very thankful
The firm’s costs are as follow:
Overheads “a”= £800,000
Labour cost per unit “b”= £100
Raw material per unit “c”= £258
Advertisement cost are “D” = £40,000 per period on advertising and are capable of producing up to 1000 units in each period.
Total cost function is expressed by
The demand function isTC= a+bQ+cQ+D
Where j=4000 k=3 and m = 3 D= advertisement costP= j-kQ + m√D
·What is the breakeven level of output?
· What is the breakeven level of output If the cost increase by 10%?
· If advertisement cost doubles what is the breakeven level of output?
P.S I would be happy If anyone can solve it in excel or otherwise put it in words with formula “how to solve it in excel” because I also have to make diagrams. Thank you