Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand..

Julie James is opening a lemonade stand.
She believes the fixed cost per week of running the stand is $50.00. Her best
guess is that she can sell 300 cups per week at $0.50 per cup. The variable
cost of producing a cup of lemonade is $0.20.

a. Given her other assumptions; what level
of sales volume will enable Julie to break even?

b. Given her other assumptions, discuss how
a change in sales volume affects profit.

c. Given her other assumptions, discuss how
a change in sales volume and variable cost jointly affect profit.

d. Use Excel’s Formula Auditing tools to
show which cells in your spreadsheet affect profit directly.