Use the Table Below to Answer the Following Question(s) -Which of the Following Is the Excel Formula to Determine

question 26

Multiple Choice

Use the table below to answer the following question(s) .
In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. $\begin{array}{|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } \\\hline 1 & \text { Profit Model } & & \\\hline 2 & & & \\\hline 3 & \text { Data } && \begin{array}{l}\text { What-If } \text { Demand } \\\text { Values }\end{array} \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price (\$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost (\$) } & 25 & 55,000 \\\hline 7 & \text { Fixed Cost (\$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Produced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$
-Which of the following is the Excel formula to determine the number of units sold?

• A) =B8
• B) =MIN(0,B8,B9)
• C) =MIN(B8,B9)
• D) =MAX(0,B8,B9)

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Definitions:

Present Value

The valuation now of money anticipated in the future or continuous cash flows, when calculated with a specified return rate.

Growing Annuity

A series of periodic payments that grow at a constant rate per period for a specified number of periods, used in financial calculations to determine the present value of such payments.

Cash Flow Growth Rate

This rate indicates the year-over-year percentage increase or decrease in a company's cash flow, used to assess the firm’s financial health and operational efficiency.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.