Athletics department has outsourced the job to your

Athletics department has outsourced the job to your company. As the business manager, you want to decide about pricing and sales volume of the T –Shirts. Your initial thought about the selling price is $50 per piece and you have estimated that each T-shirt will cost $15 to make. To run this job, your company pays $10,000 in employee salaries, $3,000 for new equipment and $500 for utilities. Assume x is the number of units to sell, p is the unit sales price, v is the unit variable cost, and FC is the total fixed cost.

1. Set up your spreadsheet model following the instructions provided. Formatting and organization of your spreadsheet model is important.

Insert screenshot of formula view here. Conduct analysis with Excel Goal Seek to identify the breakeven point, and compute the number of T-Shirts to be sold if the preset target – profit are $500 and $1000.

Insert screenshot of goal seek for profit level $500