Monthly Cost of Raw Material Calculation

How can you calculate the monthly cost of raw material?

Based on the data provided, what is the fixed cost of the raw material and how can you determine the monthly cost for each month?

Answer:

To calculate the monthly cost of raw material, you can use the formula '=A2*D2' in Excel. This formula will multiply the fixed cost of the raw material (in cell A2) by the number of units purchased each month (listed in column D).

In the given data, Candace has the fixed cost of the raw material stored in cell A2. By multiplying this fixed cost with the number of units purchased each month, she can easily calculate the monthly cost of raw material for each month.

The formula '=A2*D2' is a simple multiplication formula that takes the fixed cost value in cell A2 and multiplies it by the number of units purchased in column D. Candace can enter this formula in cell E2 and then copy and paste it to calculate the monthly cost for all the rows below.

This Excel formula simplifies the calculation process and allows Candace to efficiently determine the monthly cost of raw material for each month. By utilizing this formula, she can easily track and analyze the cost of raw material over time.