Use the Table Below to Answer the Following Question(s) -From the "What If" Values, Calculate the Net Profit When

question 63

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. $\begin{array}{|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } \\\hline 1 & \text { Profit Model } & & \\\hline 2 & & & \\\hline 3 & \text { Data } && \begin{array}{l}\text { What-If } \text { Demand } \\\text { Values }\end{array} \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price (\$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost (\$) } & 25 & 55,000 \\\hline 7 & \text { Fixed Cost (\$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Produced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$
-From the "what if" values, calculate the net profit when the demand is 65,000.

• A) $825,000
• B) $1,650,000
• C) $800,000
• D) $925,000

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Definitions:

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by its cost.

Nearest Hundred Thousand

A rounding method where a number is rounded to the closest increment of one hundred thousand.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often involving contributions from both employers and employees.

Investment Earnings

Income generated from investing capital, including dividends, interest, and capital gains.