Goal Seek Option, accounting homework help

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Topic:

Use the information provided in the P3-IP task and your calculations for the P3-IP for this task)

Moore Manufacturing expects the variable manufacturing cost per unit to increase once the new equipment in in place.

What is the most that the unit variable manufacturing cost can increase and still allow the company to earn the minimum rate of return on this investment?(Hint: use the Goal Seek option in Excel to calculate this. There is an example in your text at the end of the Capital Budgeting chapter.)

Discuss with your classmates:

Your calculation of the highest variable manufacturing cost that still allows the company to earn the minimum rate of return on the investment.

How you used the Goal Seek option in Excel to calculate the maximum variable manufacturing cost.

What are some other ways the Goal Seek option could be useful in making capital budgeting or other management decisions?

 
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