Please submit your answer with your necessary modelling as a single Microsoft Excel spreadsheet

Question 4: Currently you sell 4,000 units of an EP for 4 each. The unit variable cost is 50p. Youve looked other record labels and decide to reduce your price by 20%, you are pretty sure this will increase your sales somewhere between 20-60%.

Ignoring fixed-costs, model how this price cut will affect profit for the range of predicted sales increases.

Is it worth making this price cut?

Use the appropriate method of what if analysis to display the profit projection for the given range of projected sales increases.