JumboMags makes an exceptional line of magnetized wheels that custom car builders use in kits.
They provided you with the following information:
Product: A13847 - Jumbo Mag
Selling Price at $185.00/unit
Variable Cost: $87.50
Fixed Cost: $250,000
Units Sold Last year: 10,800
JumboMags gave you the following possible scenarios:
1. Break-even at same unit price and same variable price
2. Changed Product: An increase in selling price (from $185 to $225) by adding granite mix paint flecks which will also increase variable cost from ($87.50 to $97.50) and with an increase in units to 12,500 units
3. Compete: An increase in existing product selling price (from $185 to $205) with no change in variable costs and a predicted sales of 11,500 units
4. Worst: A decrease in existing product selling price (from $185 to $180) with an increase in variable costs because of shipping/gas higher prices (from $87.50 to 135.50) and sales at 7,500 because with higher gas prices, luxury items will not be as popular.
Please complete a Scenario Summary in Excel. Make sure to label the scenario so that it looks good. Then write a summary report using an appropriate template.
Make sure you put the raw data in excel and run the scenario summary. It will create a new page.
Keep the raw data on one tab
Make sure to include an analysis of the data. You will have to calculate break even
Hint: Break even should be $0.00