Please complete the following question on an Excel spreadsheet using Excel tools (Goal Seek, Solver). Please show all work in spreadsheet.

Question 1

Jianli Hu, regional manager of Drones, Drones, Drones, wishes to have a model

to evaluate the profit impact of various pricing strategies for the firm's newest

product, the Drone3000. Monthly fixed costs for the Drone3000 are $60,000.

The variable cost per unit is $50.00. Jianli's marketing manager believes that

the following monthly demand curve represents the product: D = 8,000 - 40P,

where D is the monthly demand, and P is the sales price.

a)Set up an Excel model, similar to Bill Pritchett's clock repair shop in

Figure 1.4, to compute monthly profit. Here the sales price will be the

decision variable, and quantity produced will be a function of sales

price. (Designate the quantity as one of the "Results.")

b)What is the monthly profit for a sales price of $100?

c)Try a few different values for the price. Does it appear that the current

price of $100 is too high or too low?

d)Use Goal Seek to find the price that would lead to a monthly profit of

$161,000.