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ethangorrell67
ethangorrell67
26.11.2019 • 
Business

Currently, you sell 40,000 units of a product for $45 each. the unit variable cost of producing the product is $5. you are thinking of cutting the product price by 30 percent. you are sure this will increase sales by an amount from 10 percent to 50 percent. perform a sensitivity analysis to show how profit will change as a function of the percentage increase in sales. ignore fixed costs. (hint: for cell d10; new profit is $1,378,000 with a 30% price cut percentage and a 30% sales increase.)

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