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I know how to use the scenario manage, my only question is, what are considered the normal values? It states No Change. Would I use
I know how to use the scenario manage, my only question is, what are considered the normal values? It states No Change. Would I use 5%, 40%, and 27.5% for the normal values? Please see the attachment.
Problem 2. Scenario Manager Our employer wants to explore the potential profitability and growth potential of a new route from Chicago to Atlanta under different market environments for demand growth Marketing and Finance has come up with the following scenarios: 1. Normal: No Change 2. High Growth with Margin Impact Sales start at 8%, which drives higher margins of 45% but includes slightly higher SG&A at 30% 3. Low Growth with Margin Impact Sales dropped to 3% growth which drove lower margins of 32% with no effect on SG&A using Scenario Manager simulate the operation income for the new Atlanta rout using the scenarios liste above. Historical Year Ending Dec. 31, 2017 2018 2019 2020 Projected Year Ending Dec. 31, 2021 2022 2023 2024 In-Store Revenue $3,950,500 Online Revenue $975,000 Cost of Sales $2,350,000 Gross Profit $2,575,500 $4,225,000 $1,150,000 $2,514,000 $2,861,000 $4,575,800 $1,280,000 $2.745,500 $3,110,300 $4,804,590 $1,344,000 $3,689,154 $2,459,436 $5,140,911 $1,438,080 $3,947,395 $2,631,597 $5,603,593 $1,567,507 $4,302.660 $2,868,440 $6,219,989 $1,739,933 $4.775,953 $3,183,969 $7,028,587 $1,966,124 $5,396,827 $3,597,885 SG&A Expense $1,042,800 Operating Income $1,532,700 $1,119.700 $1,741,300 $1.254,600 $1,855,700 $1,321,262 $1,138,174 $1,413,751 $1,217,846 $1,540,988 $1,327,452 $1.710,497 $1,473,472 $1,932,861 $1,665,023 Ratios & Assumptions Revenue Growth Rate Gross Margin SG&A Expense as % of Ticket Revenue Historical Year Ending Dec. 31, 2017 2018 2019 N/A 9.1% 8.9% 52.3% 53.2% 53.1% NA N/A N/A 2020 5.0% 40.0% 27.5% Projected Year Ending Dec. 31, 2021 2022 2023 7.0% 9.0% 11.0% 40.0% 40.0% 40.0% 27.5% 27.5% 27.5% 2024 13.0% 40.0% 27.5% 2015 - 2020 Increase 2.0% 0.096 0.0%Step by Step Solution
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