Question

Suppose that you have created a scenario summary table using MS Excel Scenario Manager so that they can compare David's scenario to Johnson's scenarios for total revenue, based on the expected number of students. Also, suppose that you have used the following formulas on your Excel Workbook: Sub-revenue = Textbook price (fixed) * Expected number of students Total revenue = Sum of sales amount from four textbooks This scenario summary table contains:

Answer 1

The student's scenario involves using MS Excel Scenario Manager to compute and compare revenue scenarios, considering factors such as total revenue, marginal revenue, and costs.

Step-by-step explanation:

The student's question relates to the use of MS Excel Scenario Manager for comparing revenue scenarios in a business context. To calculate the total revenue in such scenarios, one would multiply the textbook price, which is a fixed value, by the expected number of students to find the sub-revenue. Then, the sum of sales amounts from four different textbooks is combined to ascertain the total revenue.

Furthermore, the question mentions a table that includes not only total revenue but also marginal revenue, total cost, marginal cost, and average cost. Marginal revenue is computed as the change in total revenue divided by the change in quantity. Likewise, marginal cost is the change in total cost divided by the change in quantity, while average cost is the total cost divided by the quantity.