Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

RUSH PLEASE!!! I URGENTLY NEED THE SOLUTIONS WITHIN 3 HOURS. THANK YOU!!! Triple A Company (2020 Income Statement) PACKAGED PRODUCT SERVICES UNES TOTAL COMPANY A1

image text in transcribed

RUSH PLEASE!!! I URGENTLY NEED THE SOLUTIONS WITHIN 3 HOURS. THANK YOU!!! Triple A Company (2020 Income Statement) PACKAGED PRODUCT SERVICES UNES TOTAL COMPANY A1 A2 A3 Net Sales $1,285,000,000.00 $1,100,000,000.00 $ 145,000,000.00 $ 40,000,000.00 Variable Expenses: Service Cost $ 557,000,000.00 495,000,000.00 58,000,000.00 4,000,000.00 Commissions $ 316,000,000.00 275,000,000.00 29,000,000.00 12,000,000.00 Total Variable Expenses $ 873,000,000.00 $ 770,000,000.00 $ 87,000,000.00 $ 16,000,000.00 Contribution Margin 412,000,000.00 330,000,000.00 58,000,000.00 24,000,000.00 Fixed Expenses $ 182,000,000.00 155,000,000.00 21,000,000.00 6,000,000.00 Net Operating Income $ 230,000,000.00 $ 175,000,000.00 $ 37,000,000.00 $ 18,000,000.00 16,000 $ $ $ 2,500.00 Number of contracts sold Unit Sales per service contract Service Cost percentage of sales Commission percentage of sales Contribution Margin% Number of sales persons selling all services 44,000 25,000.00 45% 25% 30% 14,500 10,000.00 40% 20% 40% 10% 30% 60% 32% 200 Constraints: 1) Number of contracts sold in 2020 to be renewed in 2021 should not be lower than 80% 2) 2021 new service contracts should at least be 50% of the renewed contracts 3) Each sales person should at least sell i new service contract of each product line each month 4) Each product line contribution margin should be the same or higher in 2021 versus 2020 5) The commission percentages (25%, 20%, 30%), and Service cost percentage of sales (45%, 40%, 10%) per product line in 2021 should be the same as in 2020. REQUIREMENT 1 Objective: For 2021, how much is the optimal number of renewed and new contracts that the sales persons should sell per product line in order for the company to increase by 3% its total contribution margin, from 32% to 35%? (the solution should state separately how many number renewed and new contracts per product line) * Please present the solution using Linear Programming and Linear Programming Solver, complete with the mathematical equation for the decision and coefficient variables objective function, and show the actual solver. REQUIREMENT 2 Objective: Using the Sensitivity Table of the Solver and with Objective Function remaining the same, by how much can the selling price per unit of the product line with the lowest contribution margin in 2021 can be increased, so the company can increase further its total contribution margin by 2% from 35% to 37%? * Please present the solution using Linear Programming Post Optimality Analysis (Sensitivity Analysis), in detail. RUSH PLEASE!!! I URGENTLY NEED THE SOLUTIONS WITHIN 3 HOURS. THANK YOU!!! Triple A Company (2020 Income Statement) PACKAGED PRODUCT SERVICES UNES TOTAL COMPANY A1 A2 A3 Net Sales $1,285,000,000.00 $1,100,000,000.00 $ 145,000,000.00 $ 40,000,000.00 Variable Expenses: Service Cost $ 557,000,000.00 495,000,000.00 58,000,000.00 4,000,000.00 Commissions $ 316,000,000.00 275,000,000.00 29,000,000.00 12,000,000.00 Total Variable Expenses $ 873,000,000.00 $ 770,000,000.00 $ 87,000,000.00 $ 16,000,000.00 Contribution Margin 412,000,000.00 330,000,000.00 58,000,000.00 24,000,000.00 Fixed Expenses $ 182,000,000.00 155,000,000.00 21,000,000.00 6,000,000.00 Net Operating Income $ 230,000,000.00 $ 175,000,000.00 $ 37,000,000.00 $ 18,000,000.00 16,000 $ $ $ 2,500.00 Number of contracts sold Unit Sales per service contract Service Cost percentage of sales Commission percentage of sales Contribution Margin% Number of sales persons selling all services 44,000 25,000.00 45% 25% 30% 14,500 10,000.00 40% 20% 40% 10% 30% 60% 32% 200 Constraints: 1) Number of contracts sold in 2020 to be renewed in 2021 should not be lower than 80% 2) 2021 new service contracts should at least be 50% of the renewed contracts 3) Each sales person should at least sell i new service contract of each product line each month 4) Each product line contribution margin should be the same or higher in 2021 versus 2020 5) The commission percentages (25%, 20%, 30%), and Service cost percentage of sales (45%, 40%, 10%) per product line in 2021 should be the same as in 2020. REQUIREMENT 1 Objective: For 2021, how much is the optimal number of renewed and new contracts that the sales persons should sell per product line in order for the company to increase by 3% its total contribution margin, from 32% to 35%? (the solution should state separately how many number renewed and new contracts per product line) * Please present the solution using Linear Programming and Linear Programming Solver, complete with the mathematical equation for the decision and coefficient variables objective function, and show the actual solver. REQUIREMENT 2 Objective: Using the Sensitivity Table of the Solver and with Objective Function remaining the same, by how much can the selling price per unit of the product line with the lowest contribution margin in 2021 can be increased, so the company can increase further its total contribution margin by 2% from 35% to 37%? * Please present the solution using Linear Programming Post Optimality Analysis (Sensitivity Analysis), in detail

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

SQL For Data Science Data Cleaning Wrangling And Analytics With Relational Databases

Authors: Antonio Badia

1st Edition

3030575918, 978-3030575915

More Books

Students also viewed these Databases questions

Question

=+ How would you advise those problems be resolved?

Answered: 1 week ago