Alice's Furniture Shop

Problem Set 1 Q3

Parameters Bedroom Sets Dining room Sets

Unit price $ 4,500.00 $ 3,500.00
Unit sold 5 3
Fixed cost - Ops & Salary $ 20,000.00
Newspaper Advertising $ 3,000.00
Home Network strategy $ 4,000.00
Zero Investment $ -
Unit Cost $ 2,500.00 $ 2,000.00
Excess sales A 1 2
Excess sales B 0 4
Discount A 15%

Decision Option A Option B Option C

Promotional strategy

Summary of Key Outcomes Option A Option B Option C

Profit $ 2,775.00 $ 16,500.00 $ 8,500.00

Calculations Bedroom Sets Dining room Sets China Cabinet Sets

Unit sales A 6 5 4
Unit sales B 5 7 7
Unit sales C 5 3 4
Unit price A $ 3,825.00 $ 2,975.00 $ 3,400.00
Unit price B $ 4,500.00 $ 3,500.00 $ 4,000.00
Unit price C $ 4,500.00 $ 3,500.00 $ 4,000.00

Option A Option B Option C

Total Revenue $ 69,275.00 $ 87,000.00 $ 61,000.00
Total cost $ 66,500.00 $ 70,500.00 $ 52,500.00
Purchase Cost $ 43,500.00 $ 46,500.00 $ 32,500.00
Total profit $ 2,775.00 $ 16,500.00 $ 8,500.00
 Alice's Furniture Shop
Problem Set 2 Q3

China Cabinet Sets Patio Sets Question1

$ 4,000.00 $ 1,500.00
4 8
Option 1 Bedroom Sets
Unit Cost $ 2,500.00
Unit Price $ 4,500.00

$ 2,000.00 $ 750.00 Option 2 Bedroom Sets

0 6 Unit Cost $ 2,000.00
3 0 Unit Price $ 6,000.00

Option 3 Bedroom Sets

Unit Cost $ 3,000.00
Unit Price $ 4,000.00

One Way Data Table

Change in outcome wrt change in decision

Change in Newspaper Advertising Cost

Advertising Cost

Patio Sets $ 1,000.00

14 $ 1,500.00
8 $ 2,000.00
8 $ 2,500.00
$ 1,275.00 Current $ 3,000.00
$ 1,500.00 $ 3,500.00
$ 1,500.00 $ 4,000.00
$ 4,500.00
$ 5,000.00

Change in Home Network Strategy Cost

Cost of Home Network

$ 2,000.00
$ 2,500.00
$ 3,000.00
$ 3,500.00
Current $ 4,000.00
$ 4,500.00
$ 5,000.00
$ 5,500.00
$ 6,000.00
 Change in Discount Offered
Discount offered

5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
Current 15%
16%
17%
18%
19%
20%
 Q2-Summary Sheet is in the next Page

Dining room Sets China Cabinet Sets Patio Sets

$ 2,000.00 $ 2,000.00 $ 750.00
$ 3,500.00 $ 4,000.00 $ 1,500.00

Dining room Sets China Cabinet Sets Patio Sets

$ 1,500.00 $ 1,500.00 $ 700.00
$ 4,500.00 $ 4,500.00 $ 2,000.00

Dining room Sets China Cabinet Sets Patio Sets

$ 2,500.00 $ 2,500.00 $ 900.00
$ 3,000.00 $ 3,500.00 $ 1,200.00

come wrt change in decision

ewspaper Advertising Cost

Profit Option A
$ 2,775.00
$ 4,775.00
$ 4,275.00
$ 3,775.00
$ 3,275.00
$ 2,775.00
$ 2,275.00
$ 1,775.00
$ 1,275.00
$ 775.00

ome Network Strategy Cost

Profit Option B
$ 16,500.00
$ 16,500.00
$ 16,500.00
$ 16,500.00
$ 16,500.00
$ 16,500.00
$ 16,500.00
$ 16,500.00
$ 16,500.00
$ 16,500.00
e in Discount Offered
Profit Option A
$ 2,775.00
$ 10,925.00
$ 10,110.00
$ 9,295.00
$ 8,480.00
$ 7,665.00
$ 6,850.00
$ 6,035.00
$ 5,220.00
$ 4,405.00
$ 3,590.00
$ 2,775.00
$ 1,960.00
$ 1,145.00
$ 330.00
$ -485.00
$ -1,300.00
Scenario Summary
Current Values: Option 1 Option 2 Option 3
Changing Cells:
$I$8 $ 2,500.00 $ 2,500.00 $ 2,000.00 $ 3,000.00
$J$8 $ 2,000.00 $ 2,000.00 $ 1,500.00 $ 2,500.00
$K$8 $ 2,000.00 $ 2,000.00 $ 1,500.00 $ 2,500.00
$L$8 $ 750.00 $ 750.00 $ 700.00 $ 900.00
$I$9 $ 4,500.00 $ 4,500.00 $ 6,000.00 $ 4,000.00
$J$9 $ 3,500.00 $ 3,500.00 $ 4,500.00 $ 3,000.00
$K$9 $ 4,000.00 $ 4,000.00 $ 4,500.00 $ 3,500.00
$L$9 $ 1,500.00 $ 1,500.00 $ 2,000.00 $ 1,200.00
Result Cells:
$B$38 $ 2,775.00 $ 2,775.00 $ 30,525.00 $ -16,770.00
$C$38 $ 16,500.00 $ 16,500.00 $ 48,400.00 $ -6,100.00
$D$38 $ 8,500.00 $ 8,500.00 $ 31,400.00 $ -7,100.00
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
 Decisions

Marketing Cost of Softwares

Parameters

Price as per market segment

Market Size
Variable Cost
Research & Development Cost
 Output

Profit

Consequence Variable

Total Cost
Total Variable Cost
Total Research & Development Cost
Total Revenue
 Gringotts Software

Parameters
Market Segments
Educational Large Scale High Speed
Price as per segments
Students ₹ 25 ₹ 40 ₹ 75
Laboratories ₹ 125 ₹ 300 ₹ 1,000
Consultants ₹ 100 ₹ 500 ₹ 750
Small Companies ₹ 75 ₹ 250 ₹ 500
Large Companies ₹ 150 ₹ 1,000 ₹ 2,500

Market Size for softwares

Students ₹ 40,000 ₹ 40,000 ₹ 40,000
Laboratories ₹ 1,200 ₹ 1,200 ₹ 1,200
Consultants ₹ 12,000 ₹ 12,000 ₹ 12,000
Small Companies ₹ 24,000 ₹ 24,000 ₹ 24,000
Large Companies ₹ 6,000 ₹ 6,000 ₹ 6,000

Research and Development Cost - ₹ 100,000.00 ₹ 150,000.00

Variable Cost ₹ 10 ₹ 20 ₹ 36

Decisions
Marketing Cost of softwares
Students ₹ 350,000 ₹ 350,000 ₹ 350,000
Laboratories ₹ 75,000 ₹ 75,000 ₹ 75,000
Consultants ₹ 150,000 ₹ 150,000 ₹ 150,000
Small Companies ₹ 200,000 ₹ 200,000 ₹ 200,000
Large Companies ₹ 100,000 ₹ 100,000 ₹ 100,000
₹ 875,000 ₹ 875,000 ₹ 875,000

Summary of Key Outcomes

Profit ₹ 3,343,000 ₹ 17,321,000 ₹ 36,179,800

Consequence Variable
Total Revenue
Students ₹ 1,000,000 ₹ 1,600,000 ₹ 3,000,000
Laboratories ₹ 150,000 ₹ 360,000 ₹ 1,200,000
Consultants ₹ 1,200,000 ₹ 6,000,000 ₹ 9,000,000
Small Companies ₹ 1,800,000 ₹ 6,000,000 ₹ 12,000,000
Large Companies ₹ 900,000 ₹ 6,000,000 ₹ 15,000,000
Total Revenue ₹ 5,050,000 ₹ 19,960,000 ₹ 40,200,000

R&D Cost ₹ 100,000.00 ₹ 150,000.00

Students ₹ - ₹ 48,076.92 ₹ 72,115.38
Laboratories ₹ - ₹ 1,442.31 ₹ 2,163.46
Consultants ₹ - ₹ 14,423.08 ₹ 21,634.62
Small Companies ₹ - ₹ 28,846.15 ₹ 43,269.23
Large Companies ₹ - ₹ 7,211.54 ₹ 10,817.31

Variable Cost
Students ₹ 400,000 ₹ 800,000 ₹ 1,440,000
Laboratories ₹ 12,000 ₹ 24,000 ₹ 43,200
Consultants ₹ 120,000 ₹ 240,000 ₹ 432,000
Small Companies ₹ 240,000 ₹ 480,000 ₹ 864,000
Large Companies ₹ 60,000 ₹ 120,000 ₹ 216,000
₹ 832,000 ₹ 1,664,000 ₹ 2,995,200

Total Cost
Students ₹ 750,000 ₹ 1,198,077 ₹ 1,862,115
Laboratories ₹ 87,000 ₹ 100,442 ₹ 120,363
Consultants ₹ 270,000 ₹ 404,423 ₹ 603,635
Small Companies ₹ 440,000 ₹ 708,846 ₹ 1,107,269
Large Companies ₹ 160,000 ₹ 227,212 ₹ 326,817
₹ 1,707,000 ₹ 2,639,000 ₹ 4,020,200

Profit
Students ₹ 250,000 ₹ 401,923 ₹ 1,137,885
Laboratories ₹ 63,000 ₹ 259,558 ₹ 1,079,637
Consultants ₹ 930,000 ₹ 5,595,577 ₹ 8,396,365
Small Companies ₹ 1,360,000 ₹ 5,291,154 ₹ 10,892,731
Large Companies ₹ 740,000 ₹ 5,772,788 ₹ 14,673,183
Total Profit ₹ 3,343,000 ₹ 17,321,000 ₹ 36,179,800
 Black Box Diagram- SwimSkin Co.’s Marketing Campaign

Decisions

Advertising Expense

Parameters

Per unit Variable Manufacturing Cost

Selling & Admin Cost
Distribution Cost
Fixed Manufacturing Cost
 Output

Total Profit

Consequence Variable

Unit Sold
Total Cost
Selling Price
Total Revenue
Contribution Margin
Variable Manufacturing Cost
Total Distribution Cost
Total Variabe Cost
Total Fixed Cost