Question 1: You are considering opening a small copy shop. The cost of renting a copier for a year is $5000, and it costs $0.03 per copy to operate the copier. Fixed costs associated with running the store will amount to $400 per month. Your store will sell copies on average for $0.10, and it will be open 365 days a year. One copier can produce up to 100,000 copies a year. Hint: these are your assumptions that you must use to solve the following problems.

a. You need to determine the annual profit for one to five copiers rented and daily demands that are 500,1000, 1500, and 2000 copies per day. This means you have to find out the annual profit for each of these combinations of copiers rented and daily demand. [ 4 points]

b. Let's suppose that you were considering renting three copiers, how much daily demand would it take for you to break even? [ 4 points]

c. Plot the profit as a function of the number of copiers for a daily demand of 500 copies, and a daily demand of 2000 copies. Interpret the plots. This is your chance to shine. Using the knowledge you have been taught; in no more than one paragraph, you will discuss trends, directions, and other observations which qualified and competent business analysts are expected to make and report. Keep your remarks short and succinct. [ 4 points]

• I need to calculate Total Cost in Part a on word document and Excel - please can you help with formulas for word and Excel
• This is what I have below for manual calculations

W BUSAN_200_2021_S1_Assignment_1 (1) [Compatibility Mode] Q . Search in Document '+ Share Home Insert Design Layout References Mailings Review View Line Numbers Indent Spacing *E Left: 0 cm Before: 4.5 pt Size Columns Breaks bc Hyphenation Position Wrap Bring Send Selection Align Group Rotate Margins Orientation * Right: 2.72 cm After: 0 pt Text Forward Backward Pane a) For daily demand of 500 per day No. of copier 2 3 4 5 Annual demand $182,500 $182,500 $182,500 $182,500 $182,500 Capacity $100,000 $200,000 $300,000 $400,000 $500,000 Fixed cost $5,000 $10,000 $15,000 $20,000 $25,000 Other fixed cost $4,800 $4,800 $4,800 $4,800 $4,800 Variable cost $3,000 $5,475 $5,475 $5,475 $5,475 Revenue and Profit Model Revenue | $10,000 $18,250 $18,250 $18,250 $18,250 Total cost Profit -$2,800 -$2,025 -$7,025 -$12,025 -$17,025 For daily demand of 1000 per day Chart Title No. of copier 2 3 4 5 Annual demand $365,000 $365,000 $365,000 $365,000 $365,000 Capacity $100,000 $200,000 $300,000 $400,000 $500,000 Fixed cost $5,000 $10,000 $15,000 $20,000 $25,000 Other fixed cost $4,800 $4,800 $4,800 $4,800 $4,800 Variable cost $3.000 $6,000 $9.000 $10,950 $10,950 Revenue and Profit Model Revenue | $10,000 $20,000 $30,000 $36,500 $36,500 Total cost Profit -$2,800 -$800 $1,200 $750 -$4,250 For daily demand of 1500 per day No. of copier 1 2 3 4 5 Annual demand $547,500 $547,500 $547,500 $547,500 $547,500 Capacity $100,000 $200,000 $300,000 $400,000 $500,000 Fixed cost $5,000 $10,000 $15,000 $20,000 $25,000 Other fixed cost $4,800 $4,800 $4,800 $4,800 $4,800 Variable cost $3,000 $6,000 $9.000 $12,000 $15,000 Dammann and Drafit Madal E Focus + 126% Page 2 of 10 1373 Words English -W BUSAN_200_2021_S1_Assignment_1 (1) [Compatibility Mode] Q . Search in Document Home Insert Design Layout References Mailings Review View '+ Share Line Numbers Indent Spacing *E Left: 0 cm Before: 4.5 pt Margins Orientation Size Columns Breaks bc Hyphenation Position Wrap Bring Send Selection Align Group Rotate * Right: 2.72 cm After: 0 p Text Forward Backward Pane Revenue and Profit Model Revenue | $10,000 $20,000 $30,000 $40,000 $50,000 Total cost Profit -$2,800 $800 $1,200 $3,200 $5,200 Page 1 of 9 BUSAN 200 Assignment 1 MDEV464 Fore daily demand of 2000 per day No. of copier 2 3 4 5 | Annual demand $730,000 $730,000 $730,000 $730,000 $730,000 Chart Title $100,000 $200,000 $300,000 $400,000 $500,000 Fixed cost $5,000 $10,000 $15,000 $20,000 $25,000 Other fixed cost $4,800 $4.800 $4,800 $4.800 $4.800 Variable cost $3,000 $6.000 $9,000 $12,000 $15,000 Revenue and Profit Model Revenue | $10,000 $20,000 $30,000 $40,000 $50,000 Total cost Profit -$2,800 $800 $1,200 $3,200 $5,200 b) Breakeven for 3 copiers The daily demand for renting three copiers is 775 copies to reach breakeven Excel output Show formulas (Used What-If Goal seek) Copier demand decision model Input Unit cost $0.03 Fixed cost $19,800 Page 2 of 10 1373 Words English E Focus - + 126%W BUSAN_200_2021_S1_Assignment_1 (1) [Compatibility Mode] Q . Search in Document Home Insert Design Layout References Mailings Review View '+ Share Line Numbers Indent Spacing * Left: 0 cm Before: 4.5 pt Margins Orientation Size Columns Breaks bc Hyphenation Position Wrap Bring Send Selection Align Group Rotate Right: 2.72 cm After: 0 pt Text Forward Backward Pane b) Breakeven for 3 copiers The daily demand for renting three copiers is 775 copies to reach breakeven Excel output Show formulas (Used What-If Goal seek) Copier demand decision model Inputs Unit cost $0.03 Fixed cost $19,800 Annual renatal cost $5,000.00 Monthly store ren $400.00 Annual store cost $4,800.00 Chart Title Unit selling price $0.10 Copier constraint 100,000.00 Calendar days 365 Decision variable Copier quantity 3 Uncertain quantity Deman 500 Porfit model Annual production 182,500.00 Revenue $18,250.00 Cost $25,275.00 Profit -$ 7,025.00 Page 2 of 9 Page 3 of 10 1373 Words English E FOCUS - + 126%W BUSAN_200_2021_S1_Assignment_1 (1) [Compatibility Mode] Q . Search in Document Home Insert Design Layout References Mailings Review View '+ Share Line Numbers Indent Spacing *E Left: 0 cm Before: 4.5 pt Margins Orientation Size Columns Breaks be Hyphenation Position Wrap Bring Send Selection Align Group Rotate * Right: 2.72 cm After: 0 pt Text Forward Backward Pane c) For daily demand of 500 and 2000 Number of copiers Demand 500 -$2,800 -$2,025 $7,025 -$12,025 -$17,025 2000 -$2,800 -$800 $1,200 $3,200 $5,200 Excel output (Graph) Daily Demand of 500 copies 3 .2000 -4000 -6000 Chart Title -8000 10000 -12000 -14000 -16000 -18000 Daily Demand of 2000 copies $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 SO ($1,000) ($2,000) ($3,000) English E Focus + 126% Page 4 of 10 1373 Words -W BUSAN_200_2021_S1_Assignment_1 (1) [Compatibility Mode] Q . Search in Document Home Insert Design Layout References Mailings Review View '+ Share Line Numbers Indent Spacing *E Left: 0 cm Before: 4.5 pt Margins Orientation Size Columns Breaks bc Hyphenation Position Wrap Bring Send Selection Align Group Rotate * Right: 2.72 cm After: 0 pt Text Forward Backward Pane 3 5 -2000 -4000 -6000 -8000 -10000 -12000 -14000 -16000 -18000 Daily Demand of 2000 copies $6,000 $5,000 Chart Title 1000 $3,000 $2,000 $1,000 SO ($1,000) ($2,000) ($3,000) ($4,000) For the daily demand of 500 copies, the profit decreases thus showing a downward trend, and for the daily demand of 2000 copies, the profit increases thus showing an upwards trend. Thus for a daily demand of 500 copies, the profit will increase as the numbers of the copiers increase as well as the other way round. There's also more of an increase with the 2000 copies a day as the number of copiers increases. This interpretation is shown in the graphs above. Page 3 of 9 Page 4 of 10 1373 Words English E Focus + 126%