Question: D. Based on Brian's tutorial video of spreadsheet models, develop a basic but reasonable spreadsheet model of Amazon.com, assuming that it operates to 3 business
D. Based on Brian's tutorial video of spreadsheet models, develop a basic but reasonable spreadsheet model of Amazon.com, assuming that it operates to 3 business models:
(1) Sales of new products.
(2) Sales of used products from Amazon.com members.
(3) Paid subscription of Amazon Prime members.
For the sake of the exercise, assume that Amazon.com's operations are organized into 5 redundant 'regions'.
D1: Show your spreadsheet model, including a description of each numbered cell.
D2: Estimate Amazon.com's profitability based on your spreadsheet model.
D3: Assuming that an initial startup investment is $3 billion. What is the company's breakeven point based on your spreadsheet model.
D4: What additional single piece of information that you would like to receive from Amazon.com that would help your spreadsheet model be more accurate?
E. Consider the straight line with the following equation: y = 14 +23x
E1: Is the slope of this line positive or negative? Why?
E2: At what value does the line cross the y axis?
E3: At what value does the line cross the x axis?
E4: Suppose y = production cost, in dollars (so, if y = 1, then that means production cost is $1 for x number of item(s) - but for $1 you would only be able to produce 14/23 of an item, solving for x in the equation!). What is the production cost of 83 items?
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