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ITIS 1P97: Data Analysis and Business Modeling

Lab exercises

Always keep a copy of your file on your one drive folder.

Brock Club (a student club) sells print jerseys as one of the product offerings and considering purchasing printing equipment.

Two vendors have presented proposals. The fixed cost is $25, 000 for proposal A and $32,000 for proposal B. The variable cost is $12 for A, and $10 for B. The revenue generated by each unit is $20.

Setup and Use an excel spreadsheet to compute

A. If the expected volume is 3000 units, which alternative should be chosen?

B. If the expected volume is 3500 units, which alternative should be taken?

C. What is the BEP in units for proposal A?

D. What is the BEP in units for proposal B?

E. What is the BEP in dollars for proposal A?

F. What is the BEP in dollars for proposal B?

G. What Is the profit for proposal A and proposal B for the expected volume 100 units to 4500 units (with increment of 100 units)

F. Considering that approximately 3,200 units will be sold. What price should be set for proposal A and Proposal B to make $5,000 profit. (Goal Seek)