1. Describe what happens in scenario analysis and explain why firms such as Royal Dutch/Shell Group use the technique.
2. A lawnmower that costs a business $131.98 has a markup on retail of 60%. What method of determining the retail price will you use for this problem. Why?A lawnmower that costs a business $131.98 has a markup on retail of 60%. What is the retail price of the lawnmower?
3. A small manufacturer of specialty dolls and doll accessories invests $1,000,000 in materials and labor to make 25,000 dolls. The cost to package, advertise, sell and ship the dolls amounts to $245,500. What is the doll manufacturer's return on investment if only 18,000 dolls sell this year at $75 each? Whatwould have been the return on investment in the question above if the doll manufacturer had made only 18,000 dolls, just enough to meet demand? Assume the cost to package, advertise, sell and ship the dolls is still $245,500 and the unit cost in materials and labor is the same for 18,000 dolls, as it is for 25,000.