Question
Company X wants to understand its cash flow for 2019 and 2020. The initial sales in 2019 is 170, and the sales growth rate is
Company X wants to understand its cash flow for 2019 and 2020. The initial sales in 2019 is 170, and the sales growth rate is 6% per month. Correspondingly, the unit cost per item is 0.9 (i.e., one item costs 0.9 units, two items cost 1.8 units, and so forth), and the unit revenue is 1.7. Consider fixed cost equal to 250.
In Excel, present this information on a worksheet titled "Question 2". Using an appropriate data table, calculate Sales, Revenue, Variable Cost, and Net Profit for each month for both 2019 and 2020 (24 months). Draw a line chart including sales, revenue, variable cost, and net profit. Then interpret the results.
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