Reference no: EM132463936

PLEASE COMPLETE WHOLE ETOYS SECTION.

• E-Toys is a toy manufacturer located in the San Francisco Bay area. The Problem 3 worksheet shows a forecasting model used to estimate four years of revenues, costs and profits for a new toy the firm is developing. Assumptions and inputs are shown on the left and outputs of the model are shown on the right. The total net income for the four years is shown in cell I20.

Take a few minutes to review the model so that you are familiar with the inputs and understand how the Total Net Income cell is generated. For the purposes of this problem, you may assume that the model has been set up correctly.

Question a. E-Toys would like to achieve a Total Net Income of $5 million. What Initial Sales Price is needed to achieve this goal?

Question b. Create a table that shows the impact of changing Initial Unit Sales on Revenue, Total Variable Costs and Total Net Income. E-Toys wants to test sales volumes ranging from 50,000 to 100,000 in increments of 5,000. Be sure your table is formatted appropriately and shows only whole dollar values (no decimal points).

Question c. E-Toys would like to see how sales volume and sales growth - in combination - impact Total Net Income. Create a table that shows Total Net Income for various combinations of Initial Unit Sales and Annual Sales Growth. Initial Unit Sales should vary as in (c) above. Annual Sales Growth should vary from 6% to 20% in increments of 1%. Be sure your table is formatted appropriately and shows only whole dollar values (no decimal points).