Ravneet has started a business to manufacture cell phone case holders, which she intends to sell for a profit. The business will be in operation from January to June and any merchandise remaining on June 30 will be sold at a discount price.

The relevant financial information is as follows:

Regular selling price per cell phone case = $12 (from January to June 30)

Discount price of pencil holders = $5 (after June 30)

Fixed cost of production = $195 (covers a 6-month lease on equipment)

Variable costs per case = $5 (includes al materials needed)

Expected sales = 225

Planned production =175

Required:

Ravneet wants to maximize profits but at the same time wants to avoid selling cases at a discount price. As a financial modelling expert, Ravneet has hired you to create a financial model in Excel to help her evaluate the business results of her new venture.

Excel Model