Question

Wk Qu. 4-12 An analyst built the following... An analyst built the following spreadsheet, complete with named ranges (for example, cell B2 is named "Unit_Price" based on the heading in cell A2). TA 1 2 Unit Price 3 Unit Cost 4 Unit Gross Profit 10 5.73 Unit Price - Unit_Cost Quantity Sold 7,500 6 7 8 9 10 11 12 ost Gross Revenue Variable Costs Fixed Costs Net Profit Profit per Unit = Quantity_Sold x Unit Price = Quantity_Sold x Unit_Cost 4,100 = Gross_Revenue - Variable_Costs - Fixed_Costs = Net_Profit/Quantity Sold After entering the data shown below in cells B2, B3, B6, and B10, what values should appear in the following cells? (Round your "Unit Gross Profit and Profit per Unit" answers to 2 decimal places.) Value Cell B4 (Unit_Gross_Profit) B8 (Gross_Revenue) B9 (Variable_Costs) B11 (Net_Profit) B12 (Profit_per_Unit)

Answer 1

(1)

unit gross profit = unit price - unit cost

= 10 - 5.73 = 4.27

(2)

gross revenue = quantity sold x unit price

= 7500 x 10 = 75000

(3)

variable costs = quantity sold x unit cost

= 7500 x 5.73 = 42975

(4)

net profit = gross revenue - variable costs - fixed costs

= 750000 - 42975 - 4100 = 27925

(5)

profit per unit = net profit/quantity sold

= 27925/7500

= 3.7233 or 3.72