A B C D E 1 Questions For each question please compare to the Baseline Model (current state). All answers must reference the spreadsheet model Given the provided input data for the baseline and prime models, please calculate the following: 23 2 1 a What is the percent change in revenue of the prime versus baseline model? 4 b What is the percent change in profit of the prime versus baseline model? 5 C What subscription price maximizes total profit (to the nearest five dollars)? $ 6 d What is the difference in profit of prime compared to baseline at the optimal subscription price? $ 7 2 8 CO 9 a 10 b 11 C 60% Increase -3% Decrease 135.00 19,298.32 Increase Despite our objections, the company has decided to stick with $100 for a subscription price. Your boss thinks that will increase demand from customers by 40%. Create a new prime scenario modeling the forecasted 40% increase in annual demand. What is the percent change in revenue of the prime versus baseline model? What is the percent change in profit of the prime versus baseline model? Is PRIME a good decision? 170% Increase 20% Decrease 12 13 d Yes Your boss likes this, but is scared to take a recommendation to the CEO until she understands more. She is unsure of the 40% increase. Find the break-even annual demand (rounded to the closest percent) at which prime and baseline have roughly the same total profit. 14 3 15 a 16 b C Your boss decides to stick with the 40% estimated increase in annual demand, but the director of operations is concerned that because customers will order more frequently with prime. He believes that the average order size will decrease. He suggests that customer average order size will decrease to 5. Create a new model that includes both the 40% increase in demand and an average customer order size of 5. What is the percent change in revenue of the prime versus baseline model? What is the percent change in profit of the prime versus baseline model? In reality, no one is sure how average order size will be affected. Your boss wants to see the impact to total profit if the average order size changes from 1 to 10, in 1 unit increments (use Difference in Profit Homework Questions Ready Accessibility: Investigate 39F Sunset Prime Shipping Model Chart 3b (+) O Search 170% Increase -64% Decrease X < Esc J'F2 F3 F4 FS F6 F7 FB F9 prt 50 F 2 3 4 5 % dos 6 7 8