Please provide numerical answers or use the spreadsheet(show the steps on how to do the excel). Thanks!

You identified a new potential product beauty widgets. There are two similar products already selling on Amazon. Widget A sells for US$149.99 and is number #2,234 in beauty accessories. Widget B sells for US$129.99 and is number #7,123 in beauty accessories. You present the opportunity to the managing director who tells you that Widget A probably sells ~85 units per day, while Widget B probably sells 45 units per day. At a trade show you find a manufacturer that will sell you a similar product for EXW US$ 35.5. The product package weighs 1.53kg and measures 31cm x 24 cm 11 cm.

1. Should the company pursue this opportunity?

2. If yes, what is the expected profit margin?

3. At what price would you sell the product and why?

4. How many units do you expect to sell at that price and why?

5. Assuming the company, starts selling the product and everything goes as planned with the first order. The company normally has a policy to hold 14 days of inventory. How much working capital will the company need for this product?

6. The beauty widget is relatively big and heavy, so your team suggests to ship part of the first order by sea. Sea shipments cost the company US$ 3 per kg. Please insert a calculation into the excel file where can you can adjust x% of the order to be shipped by sea and (1-x)% to be shipped by air. What % do you think the company should ship by sea and why?

Appendix 1 Product Type Amazon deducts the greater of the applicable referral fee percentage or applicable per- item minimum referral fee. See notes above. Referral Fee Percentages Applicable Minimum Referral Fee (applied on a per-item basis unless otherwise noted) 12% 3D Printed Products Amazon Device Accessories 45% $1.00 Amazon Kindle Automotive & Powersports $1.00 15% 12%, except 10% for tires and wheels products 15% 15% $1.00 $1.00 15% Baby Products (excluding Baby Apparel) Beauty Books Camera and Photo Cell Phone Devices Clothing & Accessories Collectible Coins $1.00 $1.00 $1.00 8% 8% 15% 15% for the portion of the item price and any gift wrap charges paid by the buyer, up to $250 10% for any portion of the item price and any gift wrap charges paid by the buyer, greater than $250 up to $1,000 and 6% for any portion of the item price and any gift wrap charges paid by the buyer, greater than $1000 8% Consumer Electronics $1.00 Appendix 11 Weight (kg) 0.0-0.3 0.3-0.6 0.6-0.9 0.9-1.4 1.4-2.5 Fulfillment Cost (US$ per item) 2.67 3.63 4.41 6.42 8.51