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If the demand was 30000 units in 2021, that has been calculated based on the linear equation Y= a+bx which shows the relationship between sales

If the demand was 30000 units in 2021, that has been calculated based on the linear equation Y= a+bx which shows the relationship between sales and advertising cost

  1. Using Excel to create a scenario representing the estimated demand (Y) in each of these 4 cases for the next year

Case 1

Case 2

Case 3

Case 4

X/ Advertising cost

500

1000

1500

2000

b

25

20

15

10

a

10000

12000

5000

6000

  1. If the production cost is 2 JDs/unit and the selling price is 8 JDs, calculate expected profits for each scenario (please consider the advertising cost in your answer)

  1. Using the IF function, determine the number of salesmen to be used. Knowing that the company uses only 2 salesmen, however, if the sales go higher than 25000 units, then the company will use 3 salesmen and 4 salesmen for the demand that is higher than 30000

  1. Calculate the deviation in the forecasted demand based on the 4 scenarios above compared to the demand in 2021

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