Question: After developing an Amazon Prime Model, your manager is uncertain about some of the assumptions and inputs used for the Prime model Annual demand per

After developing an Amazon Prime Model, your manager is uncertain about some of the assumptions and inputs used for the Prime model

Annual demand per Customer of 100 units

Average order size of 10 units

Average selling price is $10.00

Average material cost is $8.50

The average profit per unit sold is $1.50

Fixed shipping cost is $5.00

Variable shipping cost is $1.00

A) How do changes in the inputs above impact profitability?

B) Explain how and why each of these inputs is likely to change?

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