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Problem 1 Dell was developing a new line of laptop, which requires utilizing a new production line. The annual fixed cost for production is $4,800,000.

Problem 1 Dell was developing a new line of laptop, which requires utilizing a new production line. The annual fixed cost for production is $4,800,000. This fixed cost includes the utilization of the production equipment, advertising, and other costs. In addition, the variable cost, including labor and material costs, is $200 for each laptop produced.

Each laptop is sold for $800. The exact demand for upcoming year is not known. Dell is working on assigning targeted sales volume to the Sales department. Define q as the targeted sales quantity (number of units) required for next year. Define TC(q) as the total cost to manufacture q units of laptops. Define TR(q) as the total revenue that will be collected from selling q units of laptops.

1. Write the algebraic equations for TC(q) and TR(q). 2. Define TP(q) as the net profit from selling q units, that is, TR(q) TC(q). Write the algebraic equation for TP(q). 3. Below is a screenshot of an Excel Template:

image text in transcribed

Answer all the following: i) What is the exact cell entry in B13? Give the entry in terms of cell references not variable names (e.g., =A12+B20) ii) What the exact cell entry in B14? iii) What is the exact cell entry in B15? iv) In columns D and E, we want to produce the net profit values using Excels data table option. What is the exact entry in E2? When doing the data table, you will get:

image text in transcribed v) What is the entry in Row input cell? vi) What is the entry in Column input cell? 4. Hand compute (Show Work) the breakeven quantity. 5. We could have used Excel to do the hand computation of part (d) with Goal Seek. Below is the Goal Seek dialog box:

image text in transcribed i) What is the entry in Set cell? ii) What is the entry in To value? iii) What is the entry in By changing cell?

I'd like you to post your answers in an Excel file.

When doing the data table, you will get: Data Table Row input cell: Column input cell: OK | Cancel Goal Seek ? x Set cell: To value: By changing cell: OK Cancel When doing the data table, you will get: Data Table Row input cell: Column input cell: OK | Cancel Goal Seek ? x Set cell: To value: By changing cell: OK Cancel

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