EXHIBIT 1 In this exhibit, a bakery considers producing a ne…
EXHIBIT 1 In this exhibit, a bakery considers producing a new type of bread. This bread would sell for $3.50 per unit, and the variable cost per unit would be $2.70. Producing this bread requires the bakery to purchase a new machine at a cost of $15,000, which the bakery would depreciate over 3 years at a rate of $5,000 per year. The depreciation of this machine is the only fixed cost the bakery wants to include in the break-even analysis for the new type of bread. You can use the following blank Excel file to run your calculations: Midterm_Exhibit 1_BLANK FILE.xlsm Important: When clicking on this link, if the file does not open you will find it in the “download” section of your browser (bottom left of the page) and you can open it from there. If it still does not open, make sure that you are not editing a formula in another Excel file (this sometimes prevents you from opening a new file). Please note that this file is protected against saving. Do not close this file until you submit the exam, otherwise you may loose its content. In case you inadvertently closed the file, please download it again.