Case Study Tablet Computer Profitability

PLEASE INCLUDE PICTURES OF EXCEL SHEETS AND INSTRUCTIONS ON HOW TO SET UP FOR A POSITIVE RATING

A tablet computer manufacturer has three models in its product line:

- The Mini model costs $375 to produce and sells for $499. 60,000 were sold.

- The Standard model costs $390 to produce and sells for $699. 30,000 were sold.

- The Pro model costs $435 to produce and sells for $899. 15,000 were sold.

The company plans to spend $300,000 to advertise the Mini, $500,000 to advertise the Standard, and $400,000 to advertise the Pro. These costs will be incurred regardless of how many units are sold.

Using Excel, put the above information into a spreadsheet, and develop a financial model which does the following:

- Using selling prices and production costs, calculates per-unit gross margin (profit) dollars and percent of the selling price.

- Uses selling prices and units sold to calculate total revenue from each model and the total for all three models

- Calculates total production costs from each model and the total for all three models

- Calculates gross profit of each model and the total for all three models

- Calculates net profit of each model and the total for all three models by deducting advertising expenses

- Displays the net profit of the three models in a chart which conveys the relative profit contribution of each model.

PLEASE INCLUDE PICTURES OF EXCEL SHEETS AND INSTRUCTIONS ON HOW TO SET UP FOR A POSITIVE RATING