Can you please show how to answer a, b & c using excel?

1.Gator & Co. has designed three shoe models: Prince, Sandstone, and Finesse. The prices of the models are: $1299, $779, and $629, respectively. The variable costs for these models are: $170, $155, and $120, respectively. The demand projected for each model for next year are: 55,000, 67,000, and 82,000 units.

Suppose they are now considering the addition of another product called the "Royalty" priced at $729 with a variable cost of $140. Gator & Co. expects that they will sell 60,000 units of the new product next year. Sixty percent of the sales will be from cannibalization: 20% of the volume will be from the Prince, 28% from the Sandstone, and 12% from the Finesse. The other 40% will come from market growth. The marketing costs for the Royalty will be $3M and design costs will be $300,000.

a.Should Gator & Co. launch the Royalty? Show your calculations.

b.Suppose that in year 2, sales of the Prince, Sandstone, and Finesse increase by 10%, 15%, and 25%, respectively. If the Royalty was launched in the first year, then it is expected that the demand in the second year will increase to 65,000 units. Marketing costs in the second year for the Royalty will be $1.5M. Assuming that of that volume in the second year the following percentages were cannibalized from the others: 30%, 20%, and 10%, respectively. Would your decision from part (a) change?

c.Suppose they are trying decide between launching the Royalty in the first year or in the second year.Assume that they would spend the entire marketing and design budget in the second year if they launch it then, and the demand would be 80,000 units, and cannibalized rates are 30%, 20%, and 10%, respectively. Which would be the best decision considering both years: 1) don't launch at all (part b "without"), 2) launch in first year (part b total "with"), or 3) launch in the second year, based on the numbers in this part of the problem?