Question
2. Currently, you sell 10,000 units of a product for $25 each. The unit variable cost of producing the product is $5. You are thinking
2. Currently, you sell 10,000 units of a product for $25 each. The unit variable cost of producing the product is $5. You are thinking of cutting the product price by 15 percent. You are sure this will increase sales by an amount from 5 percent to 50 percent. Perform a sensitivity analysis using Excels variable data table tool to show how profit will change as a function of the percentage increase in sales. Ignore fixed costs. What level of increase in percentage sales will achieve a new profit that equals profit before the price cut?
please use excel and show all formulas used, thanks
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