A tablet computer manufacturer has three models in its product line:
⢠The Mini model costs $275 to produce and sells for $499. 50,000 were sold.
⢠The Standard model costs $350 to produce and sells for $699. 25,000 were sold.
⢠The Pro model costs $425 to produce and sells for $899.10,000 were sold.
The company plans to spend $500,000 to advertise the Mini, $600,000 to advertise the Standard, and $750,000 to advertise the Pro. These costs will be incurred regardless of how many units are sold.
Using Excel, put the above information into a spreadsheet, and develop a financial model which does the following:
⢠Using selling prices and production costs, calculates per-unit gross margin (profit) dollars and percent of selling price.
⢠Uses selling prices and units sold to calculate total revenuefrom each model and the total for all three models
⢠Calculates total production costs from each model and the total for all three models
⢠Calculates gross profit of each model and the total for all three models
⢠Calculates net profit of each model and the total for all three models by deducting advertising expenses
⢠Displays the net profit of the three models in a chart which conveys the relative profit contribution of each model.
Sample Solution
further due to a ballistic missile being fired with the intent of hitting Riyadh (Yemen Crisis). This blockade has ruined Yemenâs economy. Saudi Arabia has taken over the Yemen Central Bank, engineered a currency crisis, collapsed purchasing power, left ¾ of the Yemeni population with little to no food or healthcare, and in the process of bombing have contributed to over 56,000 civilian deaths since 2016 (Mohamed). Yemen is not the only political climate inciting volatility in Saudi Arabiaâs oil market. After the brutal kidnapping and dismemberment of highly connected Washington Post writer, Jamal Khashoggi, within the Saudi Consulate in Istanbul, it has become obvious that Saudi Arabia, Turkey, and the United States are playing a game of political poker and using oil as the cash-out. President Erdogan of Turkey has been in power for 15 years. In this time period he has managed to gain control of nearly all Turkish news and media; Erdogan is not above promoting his own personal agenda through these means. Just as news broke of Khashoggiâs murder, Turkish officials and the news outlets controlled by them alerted the world that they had possession of audio recordings of Khashoggiâs death. Turkey then attempted to use their possession of these recordings as a direct threat to Saudi Arabia; this kind of pressure was put in place on Saudi Arabia and the United States in order to have the outcome turn to be in Turkey and/or President Erdoganâs favor (Gall). Unfortunately for Mr. Erdogan, President Donald Trump is not always a predictable>
further due to a ballistic missile being fired with the intent of hitting Riyadh (Yemen Crisis). This blockade has ruined Yemenâs economy. Saudi Arabia has taken over the Yemen Central Bank, engineered a currency crisis, collapsed purchasing power, left ¾ of the Yemeni population with little to no food or healthcare, and in the process of bombing have contributed to over 56,000 civilian deaths since 2016 (Mohamed). Yemen is not the only political climate inciting volatility in Saudi Arabiaâs oil market. After the brutal kidnapping and dismemberment of highly connected Washington Post writer, Jamal Khashoggi, within the Saudi Consulate in Istanbul, it has become obvious that Saudi Arabia, Turkey, and the United States are playing a game of political poker and using oil as the cash-out. President Erdogan of Turkey has been in power for 15 years. In this time period he has managed to gain control of nearly all Turkish news and media; Erdogan is not above promoting his own personal agenda through these means. Just as news broke of Khashoggiâs murder, Turkish officials and the news outlets controlled by them alerted the world that they had possession of audio recordings of Khashoggiâs death. Turkey then attempted to use their possession of these recordings as a direct threat to Saudi Arabia; this kind of pressure was put in place on Saudi Arabia and the United States in order to have the outcome turn to be in Turkey and/or President Erdoganâs favor (Gall). Unfortunately for Mr. Erdogan, President Donald Trump is not always a predictable>
