Using Microsoft Excel to Perform CVP Analysis Cambridge, Inc., is considering the introduction of a…

Using Microsoft Excel to Perform CVP Analysis

Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics:

Sales price

$ 18 each

Variable costs

10 each

Fixed costs

20,000 per month

Required

Using the Goal Seek function in Microsoft Excel,

a. What number must Cambridge sell to break even?

b. What number must Cambridge sell to make an operating profit t of $6,000 per month?