Data Tables - Example
Hello Company makes three different products. Due to the constraints of their manufacturing equipment and warehouse facility, the company is only able to produce, store, and sell a total of 50,000 units each month. The production of Products A and B varies each month; however, Product C is a special order for one customer who purchases the same number of units every month. Pete Davila, the CEO, has provided the following data from last month for each product.
	Income Statement	Product A	Product B	Product C	Max Capacity
	Units	43,000	5,000	2,000	50,000
	Price per unit	$ 10.00	$ 8.00	$ 50.00
	Variable expense per unit	$ 3.00	$ 2.00	$ 15.00
	Total Fixed Costs	$ 20,000	$ 40,000	$ 10,000
	Product Sales	$ 430,000	$ 40,000	$ 100,000	$ 570,000
	Variable Costs	(129,000)	(10,000)	(30,000)	(169,000)
	Contribution Margin	$ 301,000	$ 30,000	$ 70,000	$ 401,000
	Fixed Costs	(20,000)	(40,000)	(10,000)	(70,000)
	Operating income (loss)	281,000	(10,000)	60,000	$ 331,000
Required
Using the Data Table What-If Analysis tool in Excel, determine the Units and Operating Income (Loss) for each product based
on the following scenarios. (Hint: Don't forget that the warehouse can only hold up to 50,000 units.)
Scenario 1: Pete wants to find the mix of units that will result in the highest overall Operating Income, perform this analysis
using a two-variable data table. Product A can vary between 40,000 units and a maximum of 45,000 units.
Product B can vary between 3,000 units and a maximum of 8,000 units. Both Products A and B are manufactured in
1,000-unit increments. The production level of Product C is the same each month at 2,000 units.
	SCENARIO 1	Units	Operating Income (Loss)
	Product A	?	?
	Product B	?	?
	Product C	?	?
		-	$ -
Scenario 2: Pete wants each product line in the mix to be profitable. Use a One Variable Data Table to determine the
number of units for each product that should be produced (to the nearest thousand) to make each product line profitable.
	SCENARIO 2	Units	Operating Income (Loss)
	Product A	?	?
	Product B	?	?
	Product C	?	?
		-	$ -
Based on your calculations above, which scenario creates the highest overall Operating Income for the company?