Question: Problem 2 Use the worksheets Disks and Advertising Model for this problem. Disks, Inc. sells several types of professional Frisbee disks. Mike Smith, the general



Problem 2 Use the worksheets Disks and Advertising Model for this problem. Disks, Inc. sells several types of professional Frisbee disks. Mike Smith, the general manager of the company has created an Income statement, based on the various data he has, in the worksheet named Disks. The Advertising Model worksheet shows how many units of the disks can be sold for different levels of advertising. Using Excel DSS capabilities, help Mike answer the following questions. Mike wants to determine the impact of different advertising approaches and answer the following questions: 1. How many units of Tournament disks should be sold by Word of Mouth in order for this disk type to break even? 2. What should the Price per Unit be set at in order for the Supreme disks to break even? 3. What Excel feature did you use to answer these questions? B D E F G H Regular 2100 205 2305 $12.00 $27,664.60 High Flyer 2050 205 2255 $20.00 $45,107.67 Tournament 1750 205 1955 $24.00 $46.929.21 Supreme 1000 2051 1205 $32.001 $38,572.28 Total 6900 822 7722 $22.00 $158,273.76 Regular 2,535.92 $5.00 $12,679.61 High Flyer 2,480.92 $10.00 $24,809.22 Tournament 2,150.92 $16.00 $34,414.75 Supreme 1,325.92 $20.001 $26,518.44 Total 8,493.69 $12.75 $98.422.02 1 Income Statement 2 3 Revenue 4 Units Sold Based on Word of Mouth 5 Units Sold Based on Advertising 6 Total Units Sold 7 Price per Unit 8 Total 9 10 Variable Expenses 11 Units Produced To Cover Demand 12 Cost per Unit 13 Total 14 15 Fixed Expenses 16 Insurance and maintenance 17 Other Overhead 18 Advertising 19 Total 20 21 Income Summary 22 Total Revenue 23 Total Expenses 24 Net Income 25 26 27 28 29 Regu $3,000.00 $6,000.00 $1,000.00 $10,000.00 High Flyer $5,000.00 $8,500.00 $1,000.00 $14,500.00 Tournament $6,000.00 $12,000.00 $1,000.00 $19,000.00 Supreme $10,000.00 $18,000.00 $1,000.00 $29,000.00 Total $24,000.00 $44,500.00 $4,000.00 $72,500.00 Regular $27,664.60 $22,679.61 $4,984.99 High Flyer $45.107.67 $39,309.22 $5,798.45 Tournament Supreme $46.929.21 $38,572.28 $53,414.75 $55,518.44 (56,485.54) ($16,946.16) Total $158,273.76 $170,922.02 ($12,648.26) B C D E F G H J L M Increase in Sales based on Advertising 3,000 2,500 2,000 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Advertising (S) increase in Units Sold $0 0 $500 75 $1,000 206 $1,500 408 $2,000 689 $2,500 1,040 $3,000 1,432 $3,5001 1,824 $4,000 2,175 $4,5001 2,456 $5,000 2,658 $5,500 2,789 $6,000 2,864 $6,500 2.903 $7,000 2,921 $7,500 2,928 $8,000 2.931 $8,500 2,932 $9,000 2.932 $9,500 2,932 $10,000 2,932 Units Sold 1,500 Increase 1,000 500 $0 $2,000 $8.000 $10,000 $4,000 $6,000 Advertising Dollars 26 27 28 Problem 2 Use the worksheets Disks and Advertising Model for this problem. Disks, Inc. sells several types of professional Frisbee disks. Mike Smith, the general manager of the company has created an Income statement, based on the various data he has, in the worksheet named Disks. The Advertising Model worksheet shows how many units of the disks can be sold for different levels of advertising. Using Excel DSS capabilities, help Mike answer the following questions. Mike wants to determine the impact of different advertising approaches and answer the following questions: 1. How many units of Tournament disks should be sold by Word of Mouth in order for this disk type to break even? 2. What should the Price per Unit be set at in order for the Supreme disks to break even? 3. What Excel feature did you use to answer these questions? B D E F G H Regular 2100 205 2305 $12.00 $27,664.60 High Flyer 2050 205 2255 $20.00 $45,107.67 Tournament 1750 205 1955 $24.00 $46.929.21 Supreme 1000 2051 1205 $32.001 $38,572.28 Total 6900 822 7722 $22.00 $158,273.76 Regular 2,535.92 $5.00 $12,679.61 High Flyer 2,480.92 $10.00 $24,809.22 Tournament 2,150.92 $16.00 $34,414.75 Supreme 1,325.92 $20.001 $26,518.44 Total 8,493.69 $12.75 $98.422.02 1 Income Statement 2 3 Revenue 4 Units Sold Based on Word of Mouth 5 Units Sold Based on Advertising 6 Total Units Sold 7 Price per Unit 8 Total 9 10 Variable Expenses 11 Units Produced To Cover Demand 12 Cost per Unit 13 Total 14 15 Fixed Expenses 16 Insurance and maintenance 17 Other Overhead 18 Advertising 19 Total 20 21 Income Summary 22 Total Revenue 23 Total Expenses 24 Net Income 25 26 27 28 29 Regu $3,000.00 $6,000.00 $1,000.00 $10,000.00 High Flyer $5,000.00 $8,500.00 $1,000.00 $14,500.00 Tournament $6,000.00 $12,000.00 $1,000.00 $19,000.00 Supreme $10,000.00 $18,000.00 $1,000.00 $29,000.00 Total $24,000.00 $44,500.00 $4,000.00 $72,500.00 Regular $27,664.60 $22,679.61 $4,984.99 High Flyer $45.107.67 $39,309.22 $5,798.45 Tournament Supreme $46.929.21 $38,572.28 $53,414.75 $55,518.44 (56,485.54) ($16,946.16) Total $158,273.76 $170,922.02 ($12,648.26) B C D E F G H J L M Increase in Sales based on Advertising 3,000 2,500 2,000 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Advertising (S) increase in Units Sold $0 0 $500 75 $1,000 206 $1,500 408 $2,000 689 $2,500 1,040 $3,000 1,432 $3,5001 1,824 $4,000 2,175 $4,5001 2,456 $5,000 2,658 $5,500 2,789 $6,000 2,864 $6,500 2.903 $7,000 2,921 $7,500 2,928 $8,000 2.931 $8,500 2,932 $9,000 2.932 $9,500 2,932 $10,000 2,932 Units Sold 1,500 Increase 1,000 500 $0 $2,000 $8.000 $10,000 $4,000 $6,000 Advertising Dollars 26 27 28