1 14.28 Skipped Paste Font Alignment Number Format as Cell Styles New Exercise Bank Content Qu. 01-08 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. Open recovered workbooks? Your recent changes were saved. De D22 x ✓ fx B C 1 VRX2000 Optimization Model D E F 이이이 Click here for the Excel Data File 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? 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 $320 5 Unit Revenue Complete this question by entering your answers in the tabs below. 6 Fixed Cost $400 $100,000 7 Required A Required B 8 Decision Variable: Advertising Budget Note: Do not round intermediate calculations. Round your answers to the nearest whole number Advertising budget Total profit 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 11 Prediction Formula: Sales ax + b 12 a 7.01 13 b 400 14 Reqar 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

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...
icon
Related questions
Question
Answer in tipping format
1
14.28
Skipped
Paste
Font
Alignment
Number
Format as
Cell Styles
New Exercise Bank Content Qu. 01-08
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.
Open recovered workbooks? Your recent changes were saved. De
D22
x ✓ fx
B
C
1 VRX2000 Optimization Model
D
E
F
이이이
Click here for the Excel Data File
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?
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
$320
5
Unit Revenue
Complete this question by entering your answers in the tabs below.
6
Fixed Cost
$400
$100,000
7
Required A
Required B
8
Decision Variable:
Advertising Budget
Note: Do not round intermediate calculations. Round your answers to the nearest whole number
Advertising budget
Total profit
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
11
Prediction Formula: Sales ax + b
12
a
7.01
13
b
400
14
Reqar 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 14.28 Skipped Paste Font Alignment Number Format as Cell Styles New Exercise Bank Content Qu. 01-08 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. Open recovered workbooks? Your recent changes were saved. De D22 x ✓ fx B C 1 VRX2000 Optimization Model D E F 이이이 Click here for the Excel Data File 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? 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 $320 5 Unit Revenue Complete this question by entering your answers in the tabs below. 6 Fixed Cost $400 $100,000 7 Required A Required B 8 Decision Variable: Advertising Budget Note: Do not round intermediate calculations. Round your answers to the nearest whole number Advertising budget Total profit 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 11 Prediction Formula: Sales ax + b 12 a 7.01 13 b 400 14 Reqar 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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage