Question: Please help by providing the excel formulas needed thanks Introducing the new, smaller eTablet to market Decisions to be Made Price Supplier Contract Advertising Budget

Please help by providing the excel formulas needed thanks
Introducing the new, smaller eTablet to market Decisions to be Made Price Supplier Contract Advertising Budget $350 $75,000,000 Market Information Competitor Pricing $200 Base Demand 1,000,000 Market Sie 5,000,000 $35.000.000 Variable Cost Calculations Variable Production Costs Prepaid Discount Amount Adjusted Variable costs $199 $20 $173 Profitability Total Revenue -) Total Variable Costs Total Fixed Casts $551,250,000 $272,078,355 $110.000,00 Total Profit $169, 171,645 Demand Calculations Price Demand Factor Total Demand 1575000 You work on the new product development team for your company's new tablet computer affering, a smaller version of your wildly popular eTablet line. You have been given the task of determining three important decisions for this new product. First, you have been asked to determine the price for this product. Pricing is a tricky decision. You con't want to price the new tablet too high because few customers will choose the new product over your full-sized tablet offerings and you risk losing sales to your aggressively priced competitors' products. You don't want to price the product too low, because you want to earn as much revenue as possible from the product. Second, you must determine where to set the marketing budget for the new product. You know that there will be a base demand for your product that comes from your loyal customers who will buy just about anything you produce. Beyand that you also know that every dollar you spend on advertising will increase the demand for your product. Of course, there is a limit to how much money you will want to spend an advertising because eventually more money spent on advertising will have little effect on demand and will reduce the profitability of the new product. Finally, you have been asked to help decide how much money to prepay to the suppliers of the raw materials of the new product to reduce the overall costs of these materials. Every dollar you spend an prepaying your suppliers will reduce the costs of these materials and will ensure that your competitors don't have access to these materials. You have completed a spreadsheet model taald in your analysis. Use the 'What if Analysis options in Excel to help you determine the right price, advertising spending and prepaid supplier contract for your new product. Inputs Decision Set 1 Decision Set 2 Decision Set 3 Decision Set 4 Price (C3) $200 $250 $329 $250 Supplier Contract (C4) $50,000,000 $75,000,000 $100,000,000 $20,000,000 Advertising (CS) $25,000,000 $25,000,000 $50,000,000 $50,000,000 Which Scenario is most profitable? Goal Seek Parameters and Results Set Call $C$14 To Value 2,625,000 By Changing Cell $C$3 Supplier Contract and Profitability 1.2 Resulting Price? $290 1 0.8 0.6 0.4 Supplier Contract and Profitability Supplier Contract so $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 0.2 0 50 so 30.000.000 1300'000 5 300.000.000 $ 0.00 $20,000,000 $50,000,000 50.000.000 550,000,000 $100.000.000 Supplier Contract Level Optimal Supplier Contract? Advertising Budget $50,000,000 Price, Advertising, and Profitability $25,000,000 $75,000,000 $1 $1 $1 $1 $1 -$25,000,000 $200 $210 $220 $230 $240 $250 $260 $270 $280 $290 $300 $ $310 $320 $330 $340 $350 $360 $370 $380 $390 $400 $0 $0 $0 $200 $210 $220 $220 $240 $250 $260 $270 $280 $200 $300 $310 $320 $330 $340 $250 $350 $370 $380 $390 $400 Price How much should they spend on advertising? Introducing the new, smaller eTablet to market Decisions to be Made Price Supplier Contract Advertising Budget $350 $75,000,000 Market Information Competitor Pricing $200 Base Demand 1,000,000 Market Sie 5,000,000 $35.000.000 Variable Cost Calculations Variable Production Costs Prepaid Discount Amount Adjusted Variable costs $199 $20 $173 Profitability Total Revenue -) Total Variable Costs Total Fixed Casts $551,250,000 $272,078,355 $110.000,00 Total Profit $169, 171,645 Demand Calculations Price Demand Factor Total Demand 1575000 You work on the new product development team for your company's new tablet computer affering, a smaller version of your wildly popular eTablet line. You have been given the task of determining three important decisions for this new product. First, you have been asked to determine the price for this product. Pricing is a tricky decision. You con't want to price the new tablet too high because few customers will choose the new product over your full-sized tablet offerings and you risk losing sales to your aggressively priced competitors' products. You don't want to price the product too low, because you want to earn as much revenue as possible from the product. Second, you must determine where to set the marketing budget for the new product. You know that there will be a base demand for your product that comes from your loyal customers who will buy just about anything you produce. Beyand that you also know that every dollar you spend on advertising will increase the demand for your product. Of course, there is a limit to how much money you will want to spend an advertising because eventually more money spent on advertising will have little effect on demand and will reduce the profitability of the new product. Finally, you have been asked to help decide how much money to prepay to the suppliers of the raw materials of the new product to reduce the overall costs of these materials. Every dollar you spend an prepaying your suppliers will reduce the costs of these materials and will ensure that your competitors don't have access to these materials. You have completed a spreadsheet model taald in your analysis. Use the 'What if Analysis options in Excel to help you determine the right price, advertising spending and prepaid supplier contract for your new product. Inputs Decision Set 1 Decision Set 2 Decision Set 3 Decision Set 4 Price (C3) $200 $250 $329 $250 Supplier Contract (C4) $50,000,000 $75,000,000 $100,000,000 $20,000,000 Advertising (CS) $25,000,000 $25,000,000 $50,000,000 $50,000,000 Which Scenario is most profitable? Goal Seek Parameters and Results Set Call $C$14 To Value 2,625,000 By Changing Cell $C$3 Supplier Contract and Profitability 1.2 Resulting Price? $290 1 0.8 0.6 0.4 Supplier Contract and Profitability Supplier Contract so $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 0.2 0 50 so 30.000.000 1300'000 5 300.000.000 $ 0.00 $20,000,000 $50,000,000 50.000.000 550,000,000 $100.000.000 Supplier Contract Level Optimal Supplier Contract? Advertising Budget $50,000,000 Price, Advertising, and Profitability $25,000,000 $75,000,000 $1 $1 $1 $1 $1 -$25,000,000 $200 $210 $220 $230 $240 $250 $260 $270 $280 $290 $300 $ $310 $320 $330 $340 $350 $360 $370 $380 $390 $400 $0 $0 $0 $200 $210 $220 $220 $240 $250 $260 $270 $280 $200 $300 $310 $320 $330 $340 $250 $350 $370 $380 $390 $400 Price How much should they spend on advertisingStep by Step Solution
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