Hampton Lowe
08/18/2024 · Senior High School

Question 10 Run two sensitivity analyses of questions 9 by means of the Data Table tool available in Excel. a. In the first analysis one varies the normal processing capacity (from 24,000 to 34,000 pies) and the apple pie price (from \( 80 \% \) to \( 120 \% \) of the base apple price \( \$ 9.12 \) ) and then assesses the impact on the profit. (i) Represent the profit for different capacity limits and different apple pie prices. The apple pie price should be on the x -axis. (ii) Interpret the results. Are the processing capacity and the apple pie price b. The second sensitivity analysis evaluates the impact of the apple pie price (from \( 70 \% \) to 120\% of the base apple price \( \$ 9.12 \) ) on the different financial outcomes. Use the Data Table tool with just one input variable. Draw the related graph. Interpret the findings. Note: Create Sheet_QIOa and Sheet_QIOb containing all calculations and related graphs.

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To perform the sensitivity analyses, set up a base case with the base apple pie price and processing capacity. Create a data table with varying apple pie prices and processing capacities to calculate profit. Plot the data to visualize the impact on profit. Repeat the process for a second analysis focusing on the apple pie price's impact on financial outcomes. Document all calculations and graphs in separate sheets.

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