1. Hi could you help me with this please:

Schalpfer Inc. is trying to determine wheter to give a $15 rebate, to cut the price to $8, or to have no price change on a software networking product. Currently, 40,000 units of the product are sold each week for $45. The variable cost of the product is $6. The most likely case appears to be that a $15 rebate will increase sales 35% and about two-thirds of all people will claim the rebate. For the price cut the most likely case is that sales will increase 25%

a) Given all other assumptions, use Excel to create a model that describes all the scenarios given.

b) Holding all assumptions constant except the rebate claim rate, at what rebate claim rate would the rebate and price cut be equally desireble?

c) Is the no price change scenario a good choice? When?

2.

You are thinking of opening a small copy shop. Itcosts $8000 to rent a copier for a year and costs $0.023per copy to operate the copier. Other fixed costs ofrunningthe store will amount to $600 per month. Youplan to charge an average of $0.12 per copy, and thestore will be open 365 days per year. Each copier canmake up to 150,000 copies per year.

a) Using Excel, construct a two-way profit table( number of copiers on the left running top to bottom and daily demand on the top running from left to right for the 1 to 5 copiers rented and daily demands of 1000, 1500, 2000 and 2500 copies per day. That is, compute annual profit for each of these combinations of copiers rented and daily demand.

b) Given that you rent three copiers, what daily demand for copies will allow you to break even? Draw a break- even graph to show thi break-even relationship.

F-Test Two-Sample for Variances Wins Average offensive Yards Mean 6.928571429 380.5714285714 Variance 8.225274725 16078.5714285714 Observatio 14 14 df 13 13 F 0.000511568 P(F $ 500 Copiers -> p $ 1,000 $ 1,500 $ 2,000 1 2 3 4 5 6 7 8 demand fc vc 0.02 250 85.47945 0.04 500 85.47945 750 85.47945 1000 85.47945 1250 85.47945 1500 85.47945 sales 5.75 11.5 17.25 23 28.75 34.5 tc 30 91.22945 60 96.97945 90 102.7295 120 108.4795 150 114.2295 180 119.9795 200 180 160 140 120 100 fc sales 200 180 160 140 120 fc sales tc 100 80 60 40 20 0 250 500 750 1000 881 units 1250 1500 F-Test Two-Sample for Variances Wins Average offensive Yards Mean 6.928571429 380.5714285714 Variance 8.225274725 16078.5714285714 Observatio 14 14 df 13 13 F 0.000511568 P(F $ 1,000 0 250 500 750 1000 1250 1500 $ 2,000 $ 2,500 1 2 3 4 5 Copiers -> demand $ 1,500 fc vc 85.47 85.47945 85.47945 85.47945 85.47945 85.47945 85.47945 sales 0 5.75 11.5 17.25 23 28.75 34.5 tc 0 30 60 90 120 150 180 85.47 91.22945 96.97945 102.7295 108.4795 114.2295 119.9795 200 180 160 140 120 cost/sales in $ per day 100 80 60 fc sales tc 180 160 140 120 cost/sales in $ per day 100 fc sales tc 80 60 40 20 0 0 250 500 750 1000 daily units BEP 881 units 1250 1500 F-Test Two-Sample for Variances Wins Average offensive Yards Mean 6.928571429 380.5714285714 Variance 8.225274725 16078.5714285714 Observatio 14 14 df 13 13 F 0.000511568 P(F $ 500 Copiers -> p $ 1,000 $ 1,500 $ 2,000 1 2 3 4 5 6 7 8 demand fc vc 0.02 250 85.47945 0.04 500 85.47945 750 85.47945 1000 85.47945 1250 85.47945 1500 85.47945 sales 5.75 11.5 17.25 23 28.75 34.5 tc 30 91.22945 60 96.97945 90 102.7295 120 108.4795 150 114.2295 180 119.9795 200 180 160 140 120 100 fc sales 200 180 160 140 120 fc sales tc 100 80 60 40 20 0 250 500 750 1000 881 units 1250 1500 F-Test Two-Sample for Variances Wins Average offensive Yards Mean 6.928571429 380.5714285714 Variance 8.225274725 16078.5714285714 Observatio 14 14 df 13 13 F 0.000511568 P(F $ 1,000 0 250 500 750 1000 1250 1500 $ 2,000 $ 2,500 1 2 3 4 5 Copiers -> demand $ 1,500 fc vc 85.47 85.47945 85.47945 85.47945 85.47945 85.47945 85.47945 sales 0 5.75 11.5 17.25 23 28.75 34.5 tc 0 30 60 90 120 150 180 85.47 91.22945 96.97945 102.7295 108.4795 114.2295 119.9795 200 180 160 140 120 cost/sales in $ per day 100 80 60 fc sales tc 180 160 140 120 cost/sales in $ per day 100 fc sales tc 80 60 40 20 0 0 250 500 750 1000 daily units BEP 881 units 1250 1500