Goal Seek - Student Paper Only Corp. has a compensation plan for its sales reps where they meet a targeted pretax income lovet for the quarter they receive a 10% bonus based on the pretax income goall Jim just received his sales information from January and February. He needs to determine the total sales he must make in March in order to receive a bonus. Use Goal Seek to help Jim determine the total sales he needs to make in March to reach the targeted protax income level for the first quarter. Targeted Pretax Income for the quarter $ 15,000 March Quarter Totals Income Statement Units sold Price per unit Cost of goods sold per unit January February 1,500 1.250 $ 5.00 $ 5.00 $ $ 1.00 $ 1.00 $ 5.00 1.00 15 10 $ $ INCOME STATEMENT Sales Cost of goods sold Gross Profit General 8 admin expenses Pretax Income (Loss) $ 7,500 $ 1,500 6,000 $ 1.750 6,250 $ 1.250 5,000 $ 1750 13,750 2.750 11,000 5,250 19 $ 1.750 $ 4.250 $ 3,250 $ (1750) 5.750 + Required a. Using Goal Seek in Excel, determine the total number of units that Jim needs to sell in March in order to meet his targeted pretax income for the quarter. Total number of units to sell in March b. If the company increases its price per unit by $1.00 In March, what is the minimum number of units that Jim needs to sell in order to meet his targeted pretax income for the quarter? Uso Goal Seek to find your answer. Total number of units to sell in March after price increase 2 Assume that Jimmat his tamet protax income of $15,000 and will now receive a $1.500 11 Jx D Total number of units to sell in March after price increase C. Assume that Jim met his target pretax income of $15,000 and will now receive a $1,500 bonus. Jim plans to use his bonus as a down payment on a car. Using the PMT function, determine the monthly payment for his new car loan $ $ V Cost of car Down payment Loan amount Term (in months) Interest Rate (annual) Monthly Payment 30,000 1,500 28,500 60 4.75% d. Jim decides to wait to buy his car until he has a larger down payment. He wants to determine what his monthly payment would be if he eamed a full year of quarterly bonuses. Assuming Jim received the same quarterly bonus for all four quarters based on the pretax income goals described above, determine the following: (Hint: You can either use Goal Seek or the PMT function to calculate the new monthly payment.) Total bonus amount earned in one year New loan amount New monthly payment 2