Question: In the worksheet titled GreetingCard there are some cost and revenue numbers for a company that sells greeting cards. Information about the costs/revenues of the
In the worksheet titled GreetingCard there are some cost and revenue numbers for a company
that sells greeting cards. Information about the costs/revenues of the company will be entered
in cells B1:B7. That information is
Order Quantity – the number of cards purchased by the company.
Unit Cost – the cost to the company for each card.
Retail Sales Price – the revenue for each full-price card sold.
The Salvage 1 Sales Price – The revenue of each extra card (up to the limit) sold at a discount.
The Salvage 2 Sales Price – The revenue of each extra card over the limit.
Limit of Salvage 1 – The number of extra cards that can be sold at the Salvage 1 price.
Demand – The number of cards that will be able to be sold at full retail price.
You need to calculate the profit/loss for any combination of (non-negative) numbers that I put in
columns B1:B7. So your equations will need to be flexible, to account for all possibilities. You
should break it up into several different steps and then get the final profit/loss in the last step.
As a hint, I’ve put descriptions of the steps I broke it down into in cells G1:G6. I colored the text
white, so that you can’t automatically see it. If you need to look at the hints, just highlight the
cells and change the text color to black. But please spend some time trying to figure this out
without looking at the hints. As an additional hint, the answer for the given numbers can be
found in cell G7.
File Home Insert Draw Page Layout Formulas Data Review View Help Calibri Paste 11 A A = > ab Wrap Text BIU A Merge & Center Font Alignment Clipboard C7 fx General AutoSum Comments Share Fill Conditional Format as Formatting Table Cell Styles Insert Delete Format Clear Filter Sort & Find & Select Analyze Data Sensitivity Styles Cells Editing Analysis Sensitivity $ % 950000 Number A B D E F G H I J K L M N 1 Order Quantity 300 2 Unit Cost $3.50 3 Retail Sales Price $6.00 4 Salvage 1 Sales Price $2.00 5 Salvage 2 Sales Price $0.50 6 Limit of Salvage 1 40 7 Demand 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Ready Greeting Card NFL Accessibility: Good to go (+ P Q R S T U 100%
Step by Step Solution
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There are 3 Steps involved in it
Step 1 Understand the Business Context and Input Variables Realtime Example Imagine Dahlia owns a greeting card company called Happy Greetings She buys a bulk of greeting cards prices them for retail ... View full answer
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