: What is the expected annual profit of the salon? show solution using excel Case 1: Joint ProbabilitiesMr. X is planning to open a new salon. Annual revenue will depend on how successful the marketing campaignis, and the potential outcomes are as follows:Marketing CampaignHigh successModerate successLow successRevenue10%1,000,000.0070%700,000.0020%500,000.00Costs are difficult to predict as the price of hair products and the labor market are volatile. The best estimatesfor the average costs are as follows:Materials:Percentage of revenue540%1050%1510%Labor:Percentage of revenue4020%4550%5030%The fixed overhead of the salon is expected to be P10,000 per month.

Here, the cost is in proportion to the revenue, and the revenue is given as per the market campaign…

Case 1: Joint Probabilities Mr. X is planning to open a new salon. Annual revenue will depend on how successful the marketing campaign is, and the potential outcomes are as follows: Marketing Campaign High success Moderate success Low success Revenue 1,000,000.00 10% 70% 700,000.00 20% 500,000.00 Costs are difficult to predict as the price of hair products and the labor market are volatile. The best estimates for the average costs are as follows: Materials: Percentage of revenue 5 40% 10 50% 15 10% Labor: Percentage of revenue 40 20% 50% 45 50 30% The fixed overhead of the salon is expected to be P10,000 per month.

Case 1: Joint Probabilities Mr. X is planning to open a new salon. Annual revenue will depend on how successful the marketing campaign is, and the potential outcomes are as follows: Marketing Campaign High success Moderate success Low success Revenue 1,000,000.00 10% 70% 700,000.00 20% 500,000.00 Costs are difficult to predict as the price of hair products and the labor market are volatile. The best estimates for the average costs are as follows: Materials: Percentage of revenue 5 40% 10 50% 15 10% Labor: Percentage of revenue 40 20% 50% 45 50 30% The fixed overhead of the salon is expected to be P10,000 per month.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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