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

1.WeedMart now sells two strains of marijuana that have different levels of quality: Purple which sells for $50/ounce with a variable cost of $12, and the Sour Diesel priced at $35/ounce with a variable cost of $8. The company predicts that it will sell about 20,000 pounds of Purple and 35,500 pounds of Sour Diesel next year.

The management team is considering the launch of a new strain called Unleaded at a lower price point of $28/ounce with a variable cost of $6. They forecast selling 15,000 pounds in the first year. Thirty percent of these sales are expected to be incremental demand, 40% is expected to come from cannibalizing Sour Diesel sales and the remaining 30% is expected to come from Purple sales. If they launch Unleaded, they will need to spend $90,000 in R&D and about $150,000 in promotion in marijuana-themed magazines.

Note: 16 ounces = 1 pound

Please show calculations to answer the following:

a.Should WeedMart launch the Unleaded? [10]

b.In year two, (without the Unleaded) sales of Purple are expected to increase by 30% and Sour Diesel will increase by 20%. The forecast is for 20,000 pounds of Unleaded in year two, and the cannibalization rates are expected to be 20% from the Purple and 30% from Sour Diesel.They expect that promotion will cost $250,000 in year two.Considering both years, should they launch it? [10]

c.If based on the demand, they see an opportunity to increase the prices of the Purple and Sour Diesel by 5% without any effect on demand for those, but the demand for Unleaded would go up to 25,000 in the second year.Assuming the same cannibalization rates from part b., would your decision from part b change?Show calculations.