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Sue Cline, the business manager at Magna University Student Bookstore, is developing plans for the next academic year. The bookstore is one of the university's
Sue Cline, the business manager at Magna University Student Bookstore, is developing plans for the next academic year. The bookstore is one of the university's nonprofit activities, but any "surplus" profit it earns is used to support the student activities cente
Two popular products at the bookstore are the student academic calendar and notebooks with the school name. Sue Cline thinks tha she can sell calendars to percent of Magna's students, so she has had printed. The total cost, including artwork and printing, is $ Last year the calendar sold for $ but Sue is considering changing the price this year.
Sue thinks that the bookstore will be able to sell notebooks if they are priced right. But she knows that many students will buy similar notebooks without the school name from stores in town if the bookstore price is too high.
Sue has entered the information about selling price, quantity, and costs for calendars and notebooks in the spreadsheet program so that it is easy to evaluate the effect of different decisions. The spreadsheet is also set up to calculate revenue and profit, based on:
Revenue Selling price Quantity sold
Profit Revenue Total cost
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