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Question 2: Company X wants to understand its cash flow for 2019 and 2020. The initial sales in 2019 is 170 and the sales growth
Question 2: Company X wants to understand its cash flow for 2019 and 2020. The initial sales in 2019 is 170 and the sales growth rate is 6% per month. Correspondingly, the unit cost per each item is 0.9 (i.e. one item costs 0.9 unit, two items cost 1.8 unit and so forth) and the unit revenue is 1.7. Consider fixed cost equal to 50. In Excel, present this information on a worksheet titled Question 2. Using an appropriate data table, calculate revenue, sales, variable cost, fixed cost, and net profit for each month for both 2019 and 2020 (24 months). Interpret the effects of changing sales on net profit by drawing a graph. Question 2: Company X wants to understand its cash flow for 2019 and 2020. The initial sales in 2019 is 170 and the sales growth rate is 6% per month. Correspondingly, the unit cost per each item is 0.9 (i.e. one item costs 0.9 unit, two items cost 1.8 unit and so forth) and the unit revenue is 1.7. Consider fixed cost equal to 50. In Excel, present this information on a worksheet titled Question 2. Using an appropriate data table, calculate revenue, sales, variable cost, fixed cost, and net profit for each month for both 2019 and 2020 (24 months). Interpret the effects of changing sales on net profit by drawing a graph
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