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A B E F H J K 1 Ch17 Problem: Currently, you sell 40,000 units of a product for $45 each. The unit variable cost
A B E F H J K 1 Ch17 Problem: Currently, you sell 40,000 units of a product for $45 each. The unit variable cost of producing the product is $5. You are thinking of cutting the product price by 30 percent. You are sure this will increase sales by an amount from 10 percent to 60 percent. Perform a sensitivity analysis to show how 2 profit will change as a function of the percentage increase in sales. 3 current sales 40000 4 current price $ 45.00 5 unit cost $ 5.00 6 profit $ 1,600,000.00 7 8 9 pricecutpercentage 30% 10 sales increase 30% 11 new profit $ 1,378,000.00 12 13 14 new profit 15 sales increase $ 1,378,000.00 16 10% 17 20% 18 30% 19 40% 20 50% 21 60% 22 23 24 25 26 27 28 29 30 31
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