Question

Competitive Pricing

Bill Schultz is thinking of starting a store that specializes in handmade cowboy boots. Bill is a longtime rancher in the town of Taos, New Mexico. Bill's reputation for honesty and integrity is well-known around town, and he is positive that his new store will be highly successful.
Before opening his store, Bill is curious about how his profit, revenue, and variable costs will change depending on the amount he charges for his boots. Bill would like you to perform the work required for this analysis and has given you the AYK12_Data.xlsx data file. Here are a few things to consider while you perform your analysis:_______.
• Current competitive prices for custom cowboy boots are between 5225 and $275 a pair.
• Variable costs will be either S100 or S150 a pair depending on the types of material Bill chooses
• to use.
• Fixed costs are $10,000 a month.
Data File: AYK12_Data.xlsx

Answer 1

To calculate the profit of the month, the monthly cost should be extracted from the monthly generated revenue, while the revenue is the total sales of the store for the month.

Step-by-step explanation:

In the excel file worksheet, the total number of shoes should be calculated. And a formula to calculate the revenue for the month should multiply the total shoes by the price of shoes per pair

The formula to calculate the profit is gotten from total sales minus the fixed cost.