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I need it to be solved using modeling , sensitivity analysis and financial excel functions with excel or written. Part1: Sara sells two types of

image text in transcribedimage text in transcribedimage text in transcribedI need it to be solved using modeling , sensitivity analysis and financial excel functions with excel or written.

Part1: Sara sells two types of cakes from home. The total fixed cost for every month is budgeted at 200 BD. The labor cost per unit is equal to 2 BD. Sara sells 150 cake every month. The selling prices is 15 BD. The ingredient cost is 4 BD per cake. Sara wants to know what price she must charge to generate enough revenue to cover her costs. With Break-Even Analysis, Sara can compare different pricing options and calculate how many units sold will lead to profitability. She needs to calculate the contribution margin which equal to selling price minus the variable costs. Contribution margin shows the revenue earned per unit, after deducting variable costs and needs to be enough to cover the company's fixed costs. Sara needs to calculate the following: 1) Break-Even Price, to determine the price needs to be set to generate enough revenue to cover her costs. Break-Even Price equal to 1/((1 - Total Variable Costs Percent per Unit) * (Total Fixed Costs per Unit)). Where Variable Costs Percent per Unit = Total Variable Costs / (Total Variable + Total Fixed Costs). Then determine how changes in unit sold and cost per unit affect Break-Even Price, unit sold between 100 and 200 in 10 increments and Cost per unit between 3.5 and 6.5 in 0.5 increments. 2) Break-Even Units Sold, to determine the number of units that need to be sold to achieve the break-even point. To calculate the Break-Even Units Sold, we divide the total fixed costs by the contribution margin for each unit sold. Then determine how changes in unit sold and cost per unit affect Break-Even Unit, price between 7 and 17 in 1 increments and Cost per unit between 3.5 and 6.5 in 0.5 increments Part2: Sara is going to buy a new car. The amount of money he needs to borrow (with a 6-year repayment period) depends on the monthly payments he can afford. He is unsure about the annual interest rate he will receive. Assume the following values: Monthly Payment 150 BHD Annual Interest Rate 5% 1) How much would be the Loan Amount and the Total Monthly Payment after 4 year? 2) Using this loan amount can Sara buy a car with price 7,000 BHD? 3) If Sara want to buy a car with price 7,000 BHD, how much should be the Monthly Payment? 4) Determine how Loan Amount varies as amount monthly payments from 100 BHD to 200 BHD and as annual interest varies from 5% to 9%. 5) If Sara can pay only 150 BHD as Monthly Payment, explain how the interest rate will affect the Loan amount (from the data table in Q4). 6) If the maximum Loan Amount are limited to 6,000 BHD, how high an annual interest rate can he tolerate? 7) Create a report showing Loan Amount, Total Payment and the difference between Total Payment and Loan Amount for the following scenarios, If Sara wants to buy a car with price 7,000 BHD which Scenario will be the best and why? Years Interest Rate Amount paid each month Lowest payment 4.50 7.0% $140.00 Most-likely payment 4.00 5.0% $160.00 Highest payment 3.50 4.0% $180.00

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