It is March, and the annual NCAA Basketball Tournament is down to the final 4 teams....

  

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It is March, and the annual NCAA Basketball Tournament is down to the final 4 teams. Randy Kitchell is a t-shirt vendor who plans to order t-shirts with the names of the final 4 teams from a manufacturer and then sell them to the fans. The fixed cost of any order is $750, the variable cost per t-shirt depends on the quantity ordered. A quantity discount reduces the cost per shirt for larger orders, according to the table shown below. Randy's selling price during the tournament is $10. However, after the tournament Randy will have to sell any remaining t-shirts at a reduced price of $4 each. Build a spreadsheet model that will let Randy experiment with different values for demand and his order quantity. (IF and VLOOKUP functions must be used) Quantity ordered Cost per shirt (at least) 0 to 199 (0) $13 200 to 399 (200) $11 400 to 599 (400) $9 600 to 799 (600) $7 800 to 999 (800) $5 Create a two-way table to show the sensitivity of profit to changes in Demand and Order Quantity. Put Demand as the row, Order Quantity as the column. Use the values 200, 400, 600, 800, 1000 for both. Order Demand 200 400 600 800 1000 200 Quantity 400 600 800 1000 It is March, and the annual NCAA Basketball Tournament is down to the final 4 teams. Randy Kitchell is a t-shirt vendor who plans to order t-shirts with the names of the final 4 teams from a manufacturer and then sell them to the fans. The fixed cost of any order is $750, the variable cost per t-shirt depends on the quantity ordered. A quantity discount reduces the cost per shirt for larger orders, according to the table shown below. Randy's selling price during the tournament is $10. However, after the tournament Randy will have to sell any remaining t-shirts at a reduced price of $4 each. Build a spreadsheet model that will let Randy experiment with different values for demand and his order quantity. (IF and VLOOKUP functions must be used) Quantity ordered Cost per shirt (at least) 0 to 199 (0) $13 200 to 399 (200) $11 400 to 599 (400) $9 600 to 799 (600) $7 800 to 999 (800) $5 Create a two-way table to show the sensitivity of profit to changes in Demand and Order Quantity. Put Demand as the row, Order Quantity as the column. Use the values 200, 400, 600, 800, 1000 for both. Order Demand 200 400 600 800 1000 200 Quantity 400 600 800 1000

Answer rating: 100% (QA)

Quantity ordered Cost per shirt at least 0 to 199 0 13 200 to 399 200 11 400 to 599 400 9 600 to 799 ... View the full answer