In this exercise, we will demonstrate effective Excel formatting techniques to create a straightforward spreadsheet model for a business's profit. Please peruse the following situation attentively. Start constructing your own spreadsheet model.

Jake is a merchandise seller who intends to purchase t-shirts featuring the names of the NBA final four teams from a supplier, with the plan to resell them to enthusiasts. The fixed cost for any order is $1500, the variable cost per t-shirt for Jake is $8, and Jake's retail price is set at $18. However, this rate will only apply up to a week post the championship. After this period, Jake assumes that the demand for the t-shirts will dwindle, hence his plan to sell all remaining t-shirts, if any, at $6 each. His initial estimate is that the requirement for the t-shirts during the full-price duration will be around 2000. He is contemplating ordering 1800 t-shirts, but he aims to design a spreadsheet model that will allow him to experiment with the uncertain demand and his order quantity. 

What steps should he follow? Construct a spreadsheet to demonstrate the situation.

 

Answer rating: 100% (QA)

To construct a spreadsheet model for Jakes merchandise selling business follow these steps Step 1 Op... View the full answer