ACC 561 Question 2-65 EXCEL Application Exercise CVP and Break-Even 2-65 Scenari

ACC 561 Question 2-65 EXCEL Application Exercise CVP and
Break-Even 2-65 Scenario: Phonetronix is a small manufacturer of telephone and
communications devicesIntroduction to Management Accounting: Horngren C. T.
Sundem G. L. Stratton W. O. Burgstahler D. & Schatzberg J. (2008).Introduction to Management Accounting (14th ed.). Upper
Saddle River New Jersey: Pearson- Prentice Hall.Axia College of University of Phoenix (UoP)EXCEL Application Exercise CVP and Break-Even on p. 89Goal: Create an Excel spreadsheet to perform CVP analysis
and show the relationship between price costs and break-even points in terms
of units and dollars. Use the results to answer questions about your findings.Scenario: Phonetronix is a small manufacturer of telephone
and communications devices. Recently company management decided to investigate
the profitability of cellular phone
production. They have three different proposals to evaluate. Under all
the proposals the fixed costs for the
new phone would be $110000. Under proposal A the selling price of the new
phone would be $99 and the variable cost per unit would be $55. Under proposal
B the selling price of the phone would be $129 and the variable cost would
remain the same. Under proposal C the selling price would be $99 and the
variable cost would be $49.When you have completed your spreadsheet answer the
following questions:1. What are the break-even points in units and dollars under
proposal A?2. How did the increased selling price under proposal B
impact the break-even points in units and dollars compared to the break-even
points calculated under proposal A?3. Why did the change in variable cost under proposal C not
impact the break-even points in units and dollars as significantly as proposal
B did?