Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mark Whiskey needs to decide how many bottles to order for an upcoming citywide event. Because each store buys bottles whiskey from Mark's as a

Mark Whiskey needs to decide how many bottles to order for an upcoming citywide event. Because each store buys bottles whiskey from Mark's as a package of 500 and there are 3 potentially interested stores, demand will be 0, 500, 1000, or 1500. Mark has a decision to make: whether to order 0, 500, 1000, or 1500 units (bottles). Each unit costs Mark $6 and is sold for $10 to the stores. Any bottle that Mark does not sell will be donated.

  1. Enter in cell B8 a single formula that calculates total profit based on the inputs and intermediary inputs given. Note that profit depends not just on price and cost but also on number of bottles sold, which depends on both the order size (E5) and the demand (E4). Note that the demand and order size values of 0 in cells E5 and E4 are only there to construct a flexible profit formula (i.e., their values could be anything).
  2. Fill in the above two-way data table using Data/What-If-Analysis/Data Table.
  3. Use INDEX & MATCH functions to automatically return the profit value in cell C15 from the two-way data table that corresponds to the selected order size and demand (note that the formula should work for any order size and demand values selected from the dropdown menu in cells B15 & B16).
  4. Apologies about the formatting - it's weird that Cell C15 is grey given that is the "solution" to the problem - but just follow the instructions on the prompt and they correspond with the cells in the spreadsheet. If you want to reformat, feel free.

Thanks!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Accounting And Principles Of Financial Accounting

Authors: Belverd E Needles, Marian Powers, Susan V Crosson

12th Edition

1133962459, 9781133962458

More Books

Students also viewed these Accounting questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago