Paragraph Styles Font Mr. Citrus is planning to start a lemonade business in the local mall. He is beginning to evaluate the profit, revenue and variable costs based on the price for a glass of lemonade and the unit cost to produce the product. Initial estimates are as follows: variable cost is $.45 per glass; estimated annual demand is 29,000 glasses of lemonade; and the cost to rent the property is $45,000 annually. The estimated price per glass is $2.50. Total cost is the sum of the rental cost plus the annual demand times the unit price. Revenue is the annual demand times the sales price. Profit is the difference between the Revenue and the total cost. Use Data Tables Evaluate the profit and revenue for the projected demand with prices that range from $1.00 to $5.00 at $.25 increments. Evaluate the profit based on the projected demand using the same price increments and a unit cost that ranges from $.30 to $.50 based on $.05 increments. Make sure the tables are labelled correctly. Scenario Manager Use the same data as above and evaluate three scenarios for various prices, demand, and unit price. Probable Case Best Case Worst Case Price $4.00 $.2.75 $2.00 Demand 35,000 25,000 21,000 $.45 $.50 $.55 Cost Create a scenario summary report that shows the impact of these changes on Total Cost, Revenue, and Profit. Rammve all innaraceanr data columns and rowe DFocus Assignment 3 Lemonade (2) Saved to this PC References Mailings O Search Review View Help E EE 2 A A Aa A AaBbCcDc AaBbCcD AaBbC AaBbCcC T Normal No Spac. Heading 1 Heading 2 A A ont Paragraph Styles Best Case Probable Case Worst Case $4.00 Price $.2.75 25,000 $.50 $2.00 Demand 35,000 21,000 $.45 Cost $.55 Create a scenario summary report that shows the impact of these changes on Total Cost, Revenue, and Profit Remove all unnecessary data, columns, and rows Solver Using Solver look for a solution using the GRG Nonlinear Method. Create below. Make sure you restore the original values an answer report based on the constraints Set the profit to a target value of $65,000 by evaluating the price, unit cost, and demand. The inputs are subject to the following constraints. The price must be between $2.00 and $4.00. The unit cost must be between $.30 and $.50. The demand must be greater than or equal to 25,000. Paragraph Styles Font Mr. Citrus is planning to start a lemonade business in the local mall. He is beginning to evaluate the profit, revenue and variable costs based on the price for a glass of lemonade and the unit cost to produce the product. Initial estimates are as follows: variable cost is $.45 per glass; estimated annual demand is 29,000 glasses of lemonade; and the cost to rent the property is $45,000 annually. The estimated price per glass is $2.50. Total cost is the sum of the rental cost plus the annual demand times the unit price. Revenue is the annual demand times the sales price. Profit is the difference between the Revenue and the total cost. Use Data Tables Evaluate the profit and revenue for the projected demand with prices that range from $1.00 to $5.00 at $.25 increments. Evaluate the profit based on the projected demand using the same price increments and a unit cost that ranges from $.30 to $.50 based on $.05 increments. Make sure the tables are labelled correctly. Scenario Manager Use the same data as above and evaluate three scenarios for various prices, demand, and unit price. Probable Case Best Case Worst Case Price $4.00 $.2.75 $2.00 Demand 35,000 25,000 21,000 $.45 $.50 $.55 Cost Create a scenario summary report that shows the impact of these changes on Total Cost, Revenue, and Profit. Rammve all innaraceanr data columns and rowe DFocus Assignment 3 Lemonade (2) Saved to this PC References Mailings O Search Review View Help E EE 2 A A Aa A AaBbCcDc AaBbCcD AaBbC AaBbCcC T Normal No Spac. Heading 1 Heading 2 A A ont Paragraph Styles Best Case Probable Case Worst Case $4.00 Price $.2.75 25,000 $.50 $2.00 Demand 35,000 21,000 $.45 Cost $.55 Create a scenario summary report that shows the impact of these changes on Total Cost, Revenue, and Profit Remove all unnecessary data, columns, and rows Solver Using Solver look for a solution using the GRG Nonlinear Method. Create below. Make sure you restore the original values an answer report based on the constraints Set the profit to a target value of $65,000 by evaluating the price, unit cost, and demand. The inputs are subject to the following constraints. The price must be between $2.00 and $4.00. The unit cost must be between $.30 and $.50. The demand must be greater than or equal to 25,000
