A phone manufacturing company is considering to manufacture phones for one it's popular model range for the upcoming sales season. The fixed cost to produce is $1,500,000. The material cost per unit is $175.00 and the labor cost per unit is $40.00.

The company expects that the revenue per unit will be $750.00.

Note: the material cost and labor cost together make up the variable cost per unit. Assuming that after the sales, profit is calculated based the difference in the revenue and total costs invested, answer the below -

a. Build an influence diagram that illustrates the profit.

b. Define mathematical notations for each node.

c. From a and b, show the mathematical model that calculates profit.

d. From a, b and c; implement the model in excel using the principles of good spreadsheet design.

e. If the company makes and sells 2,000 phones what is the resulting profit?

f. Construct a one-way data table with production volume as the column input and profit as the output. Vary production volume from 0 - 50,000 (in increments of 2,500). In which interval does the breakeven occur.

g. Use goal seek to find the exact breakeven point for the quantity of units to be produced

h. Use scenario manager to generate the profit for the below three scenarios

	Scenario 1	Scenario 2	Scenario 3
Material Cost per unit	150.00	200.00	250.00
Labor Cost per unit	35.00	45.00	50.00
Production Volume	3500	3000	4000