Prepare Spreadsheet Model:

Greg has started a ginger ale stand. He has invested $400 in ginger ale equipment and his unit cost of producing a cup of ginger ale is $2.50. He needs to decide the price to charge for a cup of ginger ale.

a) Prepare the base case spreadsheet model assuming the base case unit price to be $4 and determine how many cups of ginger ale must Greg sell to generate a profit of $300.

b) How many cups must he sell to breakeven?

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