Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can I get help answering this questions? Also, here is the data that I am using to answer these questions thank you! AutoSave Homework 2

Can I get help answering this questions? Also, here is the data that I am using to answer these questions thank you! image text in transcribed

image text in transcribed

AutoSave Homework 2 Search H8 :fx140 \begin{tabular}{l|l|} \hline 2 & \multicolumn{1}{|c}{ A } \\ 3 & \\ \hline 4 & \multicolumn{1}{|c|}{ Model } \\ 5 & Annual demand \\ 6 & Average Order Size \\ 7 & Average Selling Price \\ 8 & Average Material Cost \\ 8 & Fixed Shipping Cost \\ 9 & Variable Shipping Cost \\ 10 & Total Market Size \\ 11 & Exponential Factor \\ 12 & Annual Membership Fee S S \\ 13 & \\ 14 & Data Validation \\ 15 & Baseline \\ 16 & Prime \\ 17 & \\ \hline \end{tabular} B C D E FG Model Analysis \begin{tabular}{l|l|l|l} \hline Model & Baseline & Prime & Prime \\ \hline Notes & Current State & Future State & \end{tabular} Order Characteristics Annual demand \begin{tabular}{lrrl} \hline Annual demand & 100 & 100 & 140= Annual_demand \\ \hline Average Order Size & 10 & 10 & 10= Average_Order_Size \\ Average Number of Orders & 10 & 10 & 14=F8/F9 \end{tabular} \begin{tabular}{|l|rr|rr|rr|} \hline Product Chacteristics & & & & & \\ \hline Average Selling Price & $ & 10.00 & $ & 10.00 & $ & 10.00 =Average_Selling_Price \\ \hline Average Material Cost & $ & 8.50 & $ & 8.50 & $ & 8.50 =Average_Material_Cost \\ Average Unit Profit & $ & 1.50 & $ & 1.50 & $ & 1.50 =F13-F14 \\ \hline Average Unit Margin & & 15% & 15% & 15%=F15/F13 \\ \hline \end{tabular} Shipping Characteristics \begin{tabular}{l|llll|lll} \hline Fixed Shipping Cost & $ & 5.00 & $ & 5.00 & $ & 5.00 & = Fixed_Shipping_Cost \\ Variable Shipping Cost & $ & 1.00 & $ & 1.00 & $ & 1.00 & = =Variable_Shipping_Cost \end{tabular} Expected Annual Financials per Customers Annual Financials Total Revenue \begin{tabular}{|l|l|l|l|l} $17,956,020.54 & $28,738,441.30 & $48,553,985.76 & =F23F35 & 160% \\ \hline$15,262,617.46 & $26,125,855.73 & $45,317,053.38 & =F26F35 & \end{tabular} Total Cost Total Profit Diferrence in Profit $(80,817.51) Questions For each question please compare to the Baseline Model (current state). All answers must reference the spreadsheet model \begin{tabular}{|c|l|l|} \hline 1 & Given the provided input data for the baseline and prime models, please calculate the following: \\ \hline a & What is the percent change in revenue of the prime versus baseline model? \\ \hline b & What is the percent change in profit of the prime versus baseline model? & \\ \hline c & What subscription price maximizes total profit (to the nearest five dollars)? & \\ \hline d & What is the difference in profit of prime compared to baseline at the optimal subscription price? & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|} \hline 2 & Despiteourobjections,thecompanyhasdecidedtostickwith$100forasubscriptionprice.Yourbossthinksthatwillincreasedemandfromcustomersby40%.Createanewprimescenariomodelingtheforecasted40%increaseinannualdemand. \\ \hline a & What is the percent change in revenue of the prime versus baseline model? & \\ \hline b & What is the percent change in profit of the prime versus baseline model? & \\ \hline c & Is PRIME a good decision? & \\ \hline d & Yourbosslikesthis,butisscaredtotakearecommendationtotheCEOuntilsheunderstandsmore.Sheisunsureofthe40%increase.Findthebreak-evenannualdemand(roundedtotheclosestpercent)atwhichprimeandbaselinehaveroughlythesametotalprofit. \\ \hline \end{tabular} AutoSave Homework 2 Search H8 :fx140 \begin{tabular}{l|l|} \hline 2 & \multicolumn{1}{|c}{ A } \\ 3 & \\ \hline 4 & \multicolumn{1}{|c|}{ Model } \\ 5 & Annual demand \\ 6 & Average Order Size \\ 7 & Average Selling Price \\ 8 & Average Material Cost \\ 8 & Fixed Shipping Cost \\ 9 & Variable Shipping Cost \\ 10 & Total Market Size \\ 11 & Exponential Factor \\ 12 & Annual Membership Fee S S \\ 13 & \\ 14 & Data Validation \\ 15 & Baseline \\ 16 & Prime \\ 17 & \\ \hline \end{tabular} B C D E FG Model Analysis \begin{tabular}{l|l|l|l} \hline Model & Baseline & Prime & Prime \\ \hline Notes & Current State & Future State & \end{tabular} Order Characteristics Annual demand \begin{tabular}{lrrl} \hline Annual demand & 100 & 100 & 140= Annual_demand \\ \hline Average Order Size & 10 & 10 & 10= Average_Order_Size \\ Average Number of Orders & 10 & 10 & 14=F8/F9 \end{tabular} \begin{tabular}{|l|rr|rr|rr|} \hline Product Chacteristics & & & & & \\ \hline Average Selling Price & $ & 10.00 & $ & 10.00 & $ & 10.00 =Average_Selling_Price \\ \hline Average Material Cost & $ & 8.50 & $ & 8.50 & $ & 8.50 =Average_Material_Cost \\ Average Unit Profit & $ & 1.50 & $ & 1.50 & $ & 1.50 =F13-F14 \\ \hline Average Unit Margin & & 15% & 15% & 15%=F15/F13 \\ \hline \end{tabular} Shipping Characteristics \begin{tabular}{l|llll|lll} \hline Fixed Shipping Cost & $ & 5.00 & $ & 5.00 & $ & 5.00 & = Fixed_Shipping_Cost \\ Variable Shipping Cost & $ & 1.00 & $ & 1.00 & $ & 1.00 & = =Variable_Shipping_Cost \end{tabular} Expected Annual Financials per Customers Annual Financials Total Revenue \begin{tabular}{|l|l|l|l|l} $17,956,020.54 & $28,738,441.30 & $48,553,985.76 & =F23F35 & 160% \\ \hline$15,262,617.46 & $26,125,855.73 & $45,317,053.38 & =F26F35 & \end{tabular} Total Cost Total Profit Diferrence in Profit $(80,817.51) Questions For each question please compare to the Baseline Model (current state). All answers must reference the spreadsheet model \begin{tabular}{|c|l|l|} \hline 1 & Given the provided input data for the baseline and prime models, please calculate the following: \\ \hline a & What is the percent change in revenue of the prime versus baseline model? \\ \hline b & What is the percent change in profit of the prime versus baseline model? & \\ \hline c & What subscription price maximizes total profit (to the nearest five dollars)? & \\ \hline d & What is the difference in profit of prime compared to baseline at the optimal subscription price? & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|} \hline 2 & Despiteourobjections,thecompanyhasdecidedtostickwith$100forasubscriptionprice.Yourbossthinksthatwillincreasedemandfromcustomersby40%.Createanewprimescenariomodelingtheforecasted40%increaseinannualdemand. \\ \hline a & What is the percent change in revenue of the prime versus baseline model? & \\ \hline b & What is the percent change in profit of the prime versus baseline model? & \\ \hline c & Is PRIME a good decision? & \\ \hline d & Yourbosslikesthis,butisscaredtotakearecommendationtotheCEOuntilsheunderstandsmore.Sheisunsureofthe40%increase.Findthebreak-evenannualdemand(roundedtotheclosestpercent)atwhichprimeandbaselinehaveroughlythesametotalprofit. \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions