Question
2. Enter your name in A3. 3. Enter your most recent cup sales in cell F6:H6. 4. Determine your cup sales by customer in the
2. Enter your name in A3. 3. Enter your most recent cup sales in cell F6:H6. 4. Determine your cup sales by customer in the range I6:K8. 5. Total your cups sales by size from I9:K9. a. Use this to check your math. The cups per size should equal the number of cups recently sold. 6. Total cups sales by Customer Type in L6:L8. 7. In L9 total all cup sales. 8. Determine percentage of overall cup sales by customer type in M6:M8. 9. Enter your most recent cup prices in B17:B19. 10. In the range E17:G19 determine new cup prices based on percentage increase. 11. Determine Base Revenue based on original price and cup sales. You are now going to determine the impact of the customer behavior on your cups sales. You will use the new prices to determine your revenue and compare it against your base revenue. I have added a working behavior and new price work area for you to use in your calculations for steps 12 to 23. If you copy and paste the price and behaviors from the 5% increase to these cells and then work through 12-23 referencing the cell D17:D19 (New Price) and K12:M14 (Working Customer Behavior) Excel will automatically determine your revenue for 10% and 15% after you pasted the data into the cells. You can also choose to work through each percentage increase independently if you prefer and not use the working areas. This means that you will use the behavior values in the range B12:J14 and pricing in the range E17:G19 to determine your cup sales after increasing your prices. 12. In the range B25:J27 determine the impact of your customer behavior based on a 5% price increase. a. Leave means that you will lose the cups sales. The value in the Leave cells will produce no revenue. b. 70% means that the customer will continue to buy from you but will reduce purchases by 30%. The value in the 70% cells will produce 70% of the revenue that would be generated by these customers. c. No Change means that these customers will have no change in behavior based on the price increase. 13. In cells D28, G28 and J28 determine new cup sales total for each cup size. 14. In cells D29, G29 and J29 determine new revenue for each cup size. 15. In cell K29 calculate total revenue for all cup sizes. 16. In Cell J20 copy the revenue from K29. a. Make sure you paste values not formulas. 17. In cell K20 determine gain or loss by comparing the Base Revenue against the 5% price increase revenue. 18. Repeat Steps 12 through 15 for a 10% price increase. 19. In cell J21 copy the revenue from K29 for a 10% increase. a. Make sure you paste values not formulas. 20. In cell K21 determine gain or loss by comparing the Base Revenue against the 10% price increase revenue. 21. Repeat Steps 12 through 15 for a 15% price increase. 22. In cell J22 copy the revenue from K29 for a 15% increase. a. Make sure you paste values not formulas. 23. In cell K22 determine gain or loss by comparing the Base Revenue against the 15% price increase revenue. 24. Highlight in yellow the revenue for the percentage price increase you would pick based on the information available. 25. Save your file and submit it to Canvas for grading
Customer Sensitivity to Pricing Changes e Name: % Cup Size Purchase by Customer Type 6 Customer Type Small Medium Large 5 Local 50% 60% College 45% 35% 3 Other 5% 5% 45% 50% 5% Cups Sold Recently Base Cup Sales by Customer Type Small Medium Large Small Medium Large Total % 1515 1313 561 758 788 252 1798 53% 682 460 289 1431 42% 76 66 28 170 5% Total 1516 1314 569 3399 10% 15% Work Area Customer Behavior Change to 709 No Change Leave Change to No Change Leave Change to 7 No Change 4% 11% 85% 7% 18% 75% 6% 13% 81% 9% 20% 71% 0% 0% 100% 1% 0% 99% New price based on increase Base Revenue 5% 10% 15% Small Medium Large Total 0 Price Increase 5% 1 Customer Type Leave Change to 70% No Change 2 Local 3% 9% 88% 3 College 5% 11% 84% 4 Other 0% 0% 100% 5 6 Price Original Price Price Increase Work Area Price 7 Small $3.25 5% 8 Medium $3.95 10% 9 Large $4.80 15% Leave 1 Revenue After Price Increase Revenue Gain/Loss 5% 10% 15% Large 70% No Change 2 3 Small 70% Medium 70% 4 Leave No Change Leave No Change Leave 5 Local 6 College 7 Other 8 Total Sales 9 Total Revenue New Revenue Customer Sensitivity to Pricing Changes e Name: % Cup Size Purchase by Customer Type 6 Customer Type Small Medium Large 5 Local 50% 60% College 45% 35% 3 Other 5% 5% 45% 50% 5% Cups Sold Recently Base Cup Sales by Customer Type Small Medium Large Small Medium Large Total % 1515 1313 561 758 788 252 1798 53% 682 460 289 1431 42% 76 66 28 170 5% Total 1516 1314 569 3399 10% 15% Work Area Customer Behavior Change to 709 No Change Leave Change to No Change Leave Change to 7 No Change 4% 11% 85% 7% 18% 75% 6% 13% 81% 9% 20% 71% 0% 0% 100% 1% 0% 99% New price based on increase Base Revenue 5% 10% 15% Small Medium Large Total 0 Price Increase 5% 1 Customer Type Leave Change to 70% No Change 2 Local 3% 9% 88% 3 College 5% 11% 84% 4 Other 0% 0% 100% 5 6 Price Original Price Price Increase Work Area Price 7 Small $3.25 5% 8 Medium $3.95 10% 9 Large $4.80 15% Leave 1 Revenue After Price Increase Revenue Gain/Loss 5% 10% 15% Large 70% No Change 2 3 Small 70% Medium 70% 4 Leave No Change Leave No Change Leave 5 Local 6 College 7 Other 8 Total Sales 9 Total Revenue New RevenueStep by Step Solution
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