risk management

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 pront 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 if proceed with the mailing? 2Continuing 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:E1 1 does not have a range name. Open your completed Excel file and name this range Costs. Then look at the formula in cell E 12. It does not automatically use the new range name Modity 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. B (Ctl)