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A tablet computer manufacturer has three models in its product line: The Mini model costs $375 to produce and sells for $499. 60,000 were sold.
A tablet computer manufacturer has three models in its product line:
- The Mini model costs $375 to produce and sells for $499. 60,000 were sold.
- The Standard model costs $390 to produce and sells for $699. 30,000 were sold.
- The Pro model costs $435 to produce and sells for $899. 15,000 were sold.
The company plans to spend $300,000 to advertise the Mini, $500,000 to advertise the Standard, and $400,000 to advertise the Pro. These costs will be incurred regardless of how many units are sold.
Using Excel, put the above information into a spreadsheet, and develop a financial model which does the following:
- Using selling prices and production costs, calculates per-unit gross margin (profit) dollars and percent of selling price.
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