Dataware is trying to determine whether to give a $10 rebate, cut the price by $6, or have no price change on a software product. Currently, 40,000 units of the product are sold each week for $45 apiece. The variable cost of the product is $5. The most likely case appears to be that a $10 rebate will increase sales 30%, and half of all people will claim the rebate. For the price cut, the most likely case is that sales will increase 20%.

a) Given all other assumptions, what increase in sales from the rebate would make the rebate and price cut equally desirable?

**Please provide answers with the formulas that was used to get the correct answer**

Excel File Edit View Insert Format Tools Data Window Help 73% E' Thu 1:08 PM Soha Ali Homework 2 Q Search Sheet Home InsertPage Layout Formulas Data Review View Developer Share ^ AutoSum , A = | E9 Wrap Text , Copy el Filly B 1 Y, , A, Merge & Center, $, % ," 40 conditional Format Cell insert Delete Format Paste Sort & Clear Formatting as Table Styles B36 Inputs s Current sales 6 Current price 40,000 $45 $5 Unit variable cost Data on rebates 0 Amount of rebate 1 Percent taking advantage 2 Increase in sales 50% 30% Data on price cut s Amount of cut 6 Increase in sales 56 20% Profits Current 21 With rebate: 22 Salcs Number of customers who will take advantage Number of customers who will NOT take advantage Total profit from those who took advantage Total profit from those who Did Not take advantage Total profit 28 29 s0 With price cut: Sales 32 Profit Basic model Ready 93% 25