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Week 1 Assignment

The document outlines an advertising budget and its impact on sales across different quarters, showing varying sales figures in relation to the advertising spend. It includes calculations for variable costs, fixed costs, and a prediction formula for future sales based on advertising budgets. The final analysis indicates a total profit of $4,048,492.76 based on a projected advertising budget of approximately $53.69 million.

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adrianeuanrana
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17 views10 pages

Week 1 Assignment

The document outlines an advertising budget and its impact on sales across different quarters, showing varying sales figures in relation to the advertising spend. It includes calculations for variable costs, fixed costs, and a prediction formula for future sales based on advertising budgets. The final analysis indicates a total profit of $4,048,492.76 based on a projected advertising budget of approximately $53.69 million.

Uploaded by

adrianeuanrana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Advertising Budget Sales

Q4 $30,000.00 568
Q1 $60,000.00 750
Q2 $10,000.00 380
Q3 $40,000.00 612
Q4 $100,000.00 910
Q1 $50,000.00 697
Q2 $0.00 149
Q3 $20,000.00 496
Q4 $80,000.00 838
Price $725.00 Sales
1000
Variable Cost $495.00
900
Quarterly Fixed Cost $80,000.00 800
700
600
500
400
300
200
100
Sales = a * sqrt(Advertising) + b
0
y = a*sqrt(x) + b
Sales
Advertising Budget Squareroot of Advertising Sales
Q4 $30,000.00 173 568
Q1 $60,000.00 245 750
Q2 $10,000.00 100 380
Q3 $40,000.00 200 612
Q4 $100,000.00 316 910
Q1 $50,000.00 224 697
Q2 $0.00 0 149
Q3 $20,000.00 141 496
Q4 $80,000.00 283 838
Price $725.00 Sales
Variable Cost $495.00 1000
Quarterly Fixed Cost $80,000.00 900
f(x) = 2.43426164450089 x + 144.995200
800
700
600
500
400
300
200
100
0
0 50 100 150
Sales

164450089 x + 144.995200714028

100 150 200 250 300 350


VRX3000

Parameters
Unit Varible Cost $495.00
Unit Revenue $725.00
Fixed Cost $80,000.00

Decision Variable
Advertising Budget $53,687,091.20

Prediction Formula
a $2.43
b $145.00

Units Sold $17,949.97


Total Revenue $13,013,727.19
Toral Variable Cost $8,885,234.43
Fixed Cost $80,000.00
Advertising Cost $53,687,091.20

Total Profit $4,048,492.76


155k 90%
170k 75%
190k 35%
Bids Prob Fav Unfav
Bid Rejected 0.5
155k 0.45
170k 0.375
190k 0.175

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