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BGC Motors and Cars4U are two fiercely competitive car dealerships. Recently, both started to sell Sniper Hybrid, a new model from Green Motors. Dealers cost

BGC Motors and Cars4U are two fiercely competitive car dealerships. Recently, both started to sell Sniper Hybrid, a new model from Green Motors. Dealers cost of the car is M19,600. Green Motors pays a dealership M300 for each car sold, and the dealership also keeps whatever markup it adds to the cost. Both dealers start selling the car at the price of M20,600. Immediately after the two dealerships started to offer the car, each decided to lower the price until the other dealership stopped selling the car. However, their price reduction policies differed. BGC Motorss policy is as follows: at the end of each day, the company sets the price for the next day at the competitors price minus R50. Cars4Us policy is the following: at the end of each day, the company sets the price for the next day at the competitors price minus one percent. Each dealership decided to stop selling the car as soon as it sells a car at a loss instead of a profit. a) Using a spreadsheet application, enter the initial numbers and build a model that will help you answer the following questions: i. Which dealer will stop selling the car first? ii. How many days after it starts to sell the car will this dealer stop selling it? iii. How much money will this dealer lose per car on the first day it loses money on this car? iv. If BGC Motors changes price reduction to M25, how will this change the results? b) Insert a 3-D column chart to compare the performance of the two dealerships. The chart should have the following: i. Chart title ii. Legend at the top. iii. Horizontal and vertical axis titles. Save your excel document using your student number as the file name.

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