Florida Atlantic University Production Costs Excel Spreadsheet
Description
Using an Excel spreadsheet, calculate the bottom line improvement using the base line below under these scenarios:
- Increase sales by 50%
- Reduce finance costs by 50%, keeping sales at $100,000
- Reduce production costs by 20% (cost of goods sold), keeping sales and finance costs at the initial levels
What option offers the best overall result?
Upload the Excel file with your calculations.
|
Item |
Base Line |
|---|---|
|
Sales |
$100,000 |
|
Cost of goods sold |
$80,000 |
|
Gross margin |
$20,000 |
|
Finance costs |
$6,000 |
|
Subtotal |
$14,000 |
|
Taxes at 25% |
$3,500 |
|
Contribution |
$ 10,500 |
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