Solved by a verified expert :Schalpfer Inc. is trying to determine wheter to give a $15
rebate, to cut the price to $8, or to have no price change on a software
networking product. Currently, 40,000 units of the product are sold each week
for $45. The variable cost of the product is $6. The most likely case appears
to be that a $15 rebate will increase sales 35% and about two-thirds of all
people will claim the rebate. For the price cut the most likely case is that
sales will increase 25%
a) Given all other assumptions, use Excel to create a model
that describes all the scenarios given.
b) Holding all assumptions constant except the rebate claim
rate, at what rebate claim rate would the rebate and price cut be equally
desireble?
c) Is the no price change scenario a good choice? When?
2.
You are thinking of opening a small copy shop. Itcosts $8000
to rent a copier for a year and costs $0.023per copy to operate the copier.
Other fixed costs ofrunningthe store will amount to $600 per month. Youplan to
charge an average of $0.12 per copy, and thestore will be open 365 days per
year. Each copier canmake up to 150,000 copies per year.
a) Using Excel, construct a two-way profit table( number of
copiers on the left running top to bottom and daily demand on the top running
from left to right for the 1 to 5 copiers rented and daily demands of 1000,
1500, 2000 and 2500 copies per day. That is, compute annual profit for each of
these combinations of copiers rented and daily demand.
b) Given that you rent three copiers, what daily demand for
copies will allow you to break even? Draw a break- even graph to show thi
break-even relationship.
3)
The graduate assistant for the Santa Clara Broncos fotball
team has compiled the following statistics:
Answer for the statistics:
a)Using Excel, develop a linear regressiob model for wins,
employing average offensive yards and average interceptions.
b) Calculate MAD for your model.
