Explain how to use Solver in Excel to solve question 3.
explain each step please.
thank you!
Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.50 per case, has not had the market success that managers expected, and the company is considering dropping Bubbs. The product-line income statement for the last month follows: Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given, Mr. Andre provides you with the following data on production costs for Bubbs for the past 12 months: Assume that the relevant range of production is between 150,000 and 275,000 cases. 3. Suppose Luke is considering a new requirement that all products have to earn an after-tax profit equal to 7 percent of total sales per month or they will be dropped. - How many cases of Bubbs does Mr. Andre-need to sell in a month to avoid seeing Bubbs dropped? (round the number of cases to the nearest whole number). - What is the expected after-tax profit associated with this level of production? - Use Solver in Excel to answer this problem. Not using Solver will lose you points. Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.50 per case, has not had the market success that managers expected, and the company is considering dropping Bubbs. The product-line income statement for the last month follows: Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given, Mr. Andre provides you with the following data on production costs for Bubbs for the past 12 months: Assume that the relevant range of production is between 150,000 and 275,000 cases. 3. Suppose Luke is considering a new requirement that all products have to earn an after-tax profit equal to 7 percent of total sales per month or they will be dropped. - How many cases of Bubbs does Mr. Andre-need to sell in a month to avoid seeing Bubbs dropped? (round the number of cases to the nearest whole number). - What is the expected after-tax profit associated with this level of production? - Use Solver in Excel to answer this problem. Not using Solver will lose you points
