Question

The current profit situation of a business owner is as follows.
Current Sales 82
Cost per Unit 75
Profit per unit 12
Using the scenario manager (solver dialog box), find the effect of in the new profit in case of the following situations.
a. Sales = 70 and cost = 80
b. Sales = 90 and cost = 72
c. Sales = 85 and cost = 80
d. Sales = 65 and cost = 80
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Answer 1

Answer:

Current sales=82

Cost per unit=75

Profit per unit=12

Selling price=75+12=87

Profit =82*12=984

a) Profit per unit =87-80=7

Profit =70*7=490

b) Profit per unit=87-72=15

profit=90*15=1350

c) Profit per unit=87-80=7

profit =85*7=595

d) Profit per unit =87-80=7

profit=65*7=455

Explanation:

answer is here

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