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undefined Case Information: Your client is Apple and they have asked you to help calculate their profitability from AirPods Pro sales. They have provided you
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Case Information: Your client is Apple and they have asked you to help calculate their profitability from AirPods Pro sales. They have provided you with the following information: Demand: The number of AirPods Pros purchased is represented by the following function: Volume Purchased = 30,000,000 - [90,000 * (price)] Costs: Apple produces AirPods Pros in two factories Factory 1 produces 60% of the total volume with a cost of $120 per unit produced (primarily driven by labor costs) Factory 2 produces 40% of the total volume with a cost of $180 per unit produced (primarily driven by labor costs) Apple incurs a procurement cost of $70 per unit to purchase the materials to produce the AirPods Pros Apple incurs a fixed cost of $250,000,000 regardless of how many items are sold (primarily from marketing and general administrative costs) Assignment Tasks: Complete the following items: Build a model in Excel that calculates the profitability of Apple's AirPods Pro sales if Apple charges a price of $250 Change your model to calculate the profitability if Apple charges a price of $270 Change your model to calculate the profitability if Apple charges a price of $300 Optional (advanced): use online resources to learn how to use Excel's Data Table function to show how the profitability would change from a price of $200 to $300 in increments of $10 (e.g., $200, $210, $220, $230, etc.)Step by Step Solution
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