Let's revisit HW 3c. For the rebate amount of $5, create a 2-way data-table to study the effects of the demand increase (5% to 25% by the increment of 5%) and the percentage of claims (5% to 25% by the increment of 5%) on the profit. That is, how the profit changes for different combinations of demand increase % and claim %. HW 3C below solution

No rebate With Rebate
Profit $ 60,000 $ 70,800
Revenue $ 100,000 120000
Price $ 50 50
Qty sold $ 2,000 2400
% Increase demand 0.2
Total cost $ 40,000 $ 48,000
Unit VC $ 20 $ 20
Rebate Cost $ 1,200
Unit Amt $ 5
# of claims 240
% of claims 10%

Answer rating: 100% (QA)

Profit Revenue Total cost 100000 40000 60000 With rebate Profit Revenue Total cost Rebate amount ... View the full answer