1 New Exercise Bank Content Qu. 01-08 Paste Font Alignment Number Format as Cell Styles 14.28 points Skipped Click here for the Excel Data File Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4. There it was determined that the optimal level of advertising spending was $135,392 leading to a profit of $77,425. Now suppose that the selling price, variable cost and/or fixed cost can fluctuate as stated below. D22 A Open recovered workbooks? Your recent changes were saved. D x × < fx B C D E F eBook a. Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit? 1 VRX2000 Optimization Model 2 Print b. Re-solve the optimization model for the VRX2000 using a variable cost of $280, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit? 3 Parameters: 4 Unit Variable Cost 5 Unit Revenue References Complete this question by entering your answers in the tabs below. 6 Fixed Cost $320 $400 $100,000 7 Required A 8 Required B Decision Variable: 9 Advertising Budget Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit? 10 Note: Do not round intermediate calculations. Round your answers to the nearest whole number. 11 Prediction Formula: Sales ax + b 12 Advertising budget a 7.01 Total profit 13 b 400 14 Required A Required B > 15 Expected Units Sold 16 17 Total Revenue 18 Total Variable Cost 19 Fixed Cost $100,000 20 Advertising Cost 21 22 Total Profit 23 24 25 26 27 28 29 30

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 4.2C
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1
New Exercise Bank Content Qu. 01-08
Paste
Font
Alignment
Number
Format as
Cell Styles
14.28
points
Skipped
Click here for the Excel Data File
Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4. There it was determined
that the optimal level of advertising spending was $135,392 leading to a profit of $77,425. Now suppose that the selling price, variable
cost and/or fixed cost can fluctuate as stated below.
D22
A
Open recovered workbooks? Your recent changes were saved. D
x × <
fx
B
C
D
E
F
eBook
a. Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of $100,000.
What are the optimal advertising budget and the resulting total profit?
1 VRX2000 Optimization Model
2
Print
b. Re-solve the optimization model for the VRX2000 using a variable cost of $280, a selling price of $400, and fixed costs of $100,000.
What are the optimal advertising budget and the resulting total profit?
3
Parameters:
4
Unit Variable Cost
5
Unit Revenue
References
Complete this question by entering your answers in the tabs below.
6
Fixed Cost
$320
$400
$100,000
7
Required A
8
Required B
Decision Variable:
9
Advertising Budget
Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of
$100,000. What are the optimal advertising budget and the resulting total profit?
10
Note: Do not round intermediate calculations. Round your answers to the nearest whole number.
11
Prediction Formula: Sales ax + b
12
Advertising budget
a
7.01
Total profit
13
b
400
14
Required A
Required B >
15
Expected Units Sold
16
17
Total Revenue
18
Total Variable Cost
19
Fixed Cost
$100,000
20
Advertising Cost
21
22
Total Profit
23
24
25
26
27
28
29
30
Transcribed Image Text:1 New Exercise Bank Content Qu. 01-08 Paste Font Alignment Number Format as Cell Styles 14.28 points Skipped Click here for the Excel Data File Reconsider the example of choosing the advertising budget for the VRX2000 that is presented in Section 1.4. There it was determined that the optimal level of advertising spending was $135,392 leading to a profit of $77,425. Now suppose that the selling price, variable cost and/or fixed cost can fluctuate as stated below. D22 A Open recovered workbooks? Your recent changes were saved. D x × < fx B C D E F eBook a. Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit? 1 VRX2000 Optimization Model 2 Print b. Re-solve the optimization model for the VRX2000 using a variable cost of $280, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit? 3 Parameters: 4 Unit Variable Cost 5 Unit Revenue References Complete this question by entering your answers in the tabs below. 6 Fixed Cost $320 $400 $100,000 7 Required A 8 Required B Decision Variable: 9 Advertising Budget Re-solve the optimization model for the VRX2000 using a variable cost of $320, a selling price of $400, and fixed costs of $100,000. What are the optimal advertising budget and the resulting total profit? 10 Note: Do not round intermediate calculations. Round your answers to the nearest whole number. 11 Prediction Formula: Sales ax + b 12 Advertising budget a 7.01 Total profit 13 b 400 14 Required A Required B > 15 Expected Units Sold 16 17 Total Revenue 18 Total Variable Cost 19 Fixed Cost $100,000 20 Advertising Cost 21 22 Total Profit 23 24 25 26 27 28 29 30
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