Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 3

WHAT-IF ANALYSIS
Bumblebee Mobiles is trying to reduce its unit costs. Management believes that the two easiest areas to save costs are setups and power. Determine the new cost information for each of the following independent situations. Remember to reset your data to the original information after answering each item.
a. What are the new unit costs of each product if annual setup costs are reduced by 25% (Change cell B8.)
Bubble: $________________ _ Burst: $________________ _
b. What is the new unit cost of each product if the number of setups can be reduced by 50% (Change cells B18 and C18.)
Bubble: $________________ _ Burst: $________________ _
c. What is the new unit cost of each product if annual power costs are reduced by 70% (Change cell B11.)
Bubble: $________________ _ Burst: $________________ _