I am working on a project for my accounting class. It is an extensive project and after much trial and error, I have all my information ready to use to complete the remainder of requirements. This included making a baseline excel file with assumptions given, oroducing budget schedules and statements. All of my numbers check out but now for my first requirement, this is what I am asked: Cost-Volume-Profit Analysis 1. MINIPADs market researcher suggests that the product market is becoming highly competitive. Due to economic conditions and competitive pricing, sales prices must be reduced. a) Begin with the Baseline Scenario (Save a copy of the Baseline model worksheet, label the tab A.1.a. and complete the analysis on the newly created worksheet. Always keep the Baseline model clean of analysis so you always have it to come back to.) By what overall percentage may MINIPAD lower the unit selling prices every month for both products and still maintain breakeven operating income for the quarter? (Hint: use Goal Seek) Confirm that you obtained breakeven operating income with the price reduction and save your file and analyze your results. Explain your results and how they can be used by management.

After using Goal Seek (based on set cell to total operating income, value 0, and change from original price sensitivity percentage) on excel, the price sensitivity changed and altered the unit selling price per the four months being analyzed. I am asked what overall percentage may lower the selling prices FOR EVERY MONTH FOR BOTH PRODUCTS (2; base and premium). And yes, my balance sheet still balances after the use of goal seek.

	Actual	July	August	September	October	Total
Price sensitivity (baseline)		-2.00%	-2.00%	-2.00%	-2.00%
Price sensitivity (after goal seek)		-5.96%	-5.96%	-5.96%	-5.96%
Unit selling price (baseline-base)	215$	211	206	202	198
USP (baseline-premium)	350$	343	336	329	323
Unit selling price (after g.s-base)	215$	202	190	179	168
USP (after g.s-premium)	350$	329	310	291	274
operating income (baseline)			159,684	210,640	261,843	634,325
operating income (after g.s)			65,456	6,883	(72,339)	0

Can someone give any indication or help for what to do next to complete this analysis? Are these my answers or is the overall percentage needing calculated based on the change in prices each month from using goal seek? Is more information needed to answer this question?