Beckham Created the Worksheets Above to Show the Profitability and Break-Even

question 142

Multiple Choice

Beckham created the worksheets above to show the profitability and break-even points for his company. Please refer to the figure above as you answer the questions below.
-Beckham has received word from the Purchasing Department that there could be some variance in the COGS. He wants to develop a worksheet that shows the effects of various interactions between the selling price and the cost of goods sold per unit on profitability. In the two-variable data table, how would he set it up?

• A) Place COGS and selling price next to each other in a column, and the table's output formula for income in the third column.
• B) Place COGS and selling price perpendicular to each other, and the table's output formula for income in the intersection of these two sets of input variables.
• C) Place income and selling price perpendicular to each other, and the table's output formula for COGS in the intersection of these two sets of input variables.
• D) Place COGS and selling price in two subsequent rows, with the table's output formula for income in the third row.

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Definitions:

Interest Payments

Payments made to lenders as compensation for the use of borrowed money, typically calculated as a percentage of the principal amount.

Interest Rates

The cost of borrowing money or the return on investment capital, expressed as a percentage of the money borrowed or invested.

Loan

A borrowed sum of money that is expected to be paid back with interest.

Single Tax

A fiscal system proposing a single tax as the primary or sole source of public revenue, often associated with taxing land value.