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Question 2-25 Marks In Week 5 and 6(using the Decision Making Examples manual), you developed a breakeven analysis for Quality Sweaters company, sells hand-knitted sweaters

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Question 2-25 Marks In Week 5 and 6(using the Decision Making Examples manual), you developed a breakeven analysis for Quality Sweaters company, sells hand-knitted sweaters The company is planning to print a catalogue of its products and undertake a direct mail campaign. The objective of the model is to determine the company's profit and to see how sensitive the profit is to the response rate from the mailing. Now, use the fully developed spreadsheet (after completing the manual) and perform below changes on the model, 1. Export all the results and discussions to below questions How does a change in the response rate affect profit? For what response does the company break even? If the company estimates a response rate of 3%, should it proceed with the mailing? 2. Continuing the previous problem use goal seek for each value of number mailed (once for 80000, once for 90000 and so on). For each, find the response rate that allows the company to break even. 3. In the quality sweaters model, the range E9:E11 does not have a range name. Open your completed Excel file and name this range Costs. Then look at the formula in cell E12. It does not automatically use the new range name. Modify the formula so that it does. 4. As the quality sweaters problem is now modelled, if all inputs remain fixed except for the number mailed, profit will increase indefinitely as the number mailed increased. This hardly seems relative- the company could become infinitely rich. Discuss realistic ways to modify the model so that this unrealistic behaviour is eliminated. Part 2-Outcomes- 1 mark Page Number Provide discussion on the company objective? Exports of results, representation, results, discussion and citations, if any. Changes to spreadsheet with mailed number changes and goal seek solutions for each output. Response rate, break even points and discussions Changes to cell, naming the cell, changes to the formula and outputs, if any. Discussion on changes, if any. Changes to the model, outputs if any, their effect on the company and logical/realistic discussions on the unrealistic behaviour. (Maximum 500 words) - 4

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