Mykew Gregorovitch Mykew Gregorovitch incurs a fixed cost of 5 milion wizard dollars to produce and sell magic wands for budding wizards. These fixed cost includes the fee paid to cover a designer to design the wands, the fee paid to an expert wizard who would determine wand flexibility, etc. The materiais used to make a wand include a wand core for 100 wizard dollars, wand quality wood for 50 wizard dollars, wand grip for 30 wizard dollars, and a wand head for 20 wizard dollars. The labour required to assemble a wand amounts to one-quarter of an hour for a worker earning 50 wizard dollars per hour. a. Develop a base case spreadsheet model to help Mykew Gregorovitch decide the price at which to sell a wand. Make suitable assumptions. Write the value of the base case outcome in the space provided. b. At a unit price of $250, how many wands must be sold to breakeven? Which Excel feature will you use to find the breakeven value? Write your answer in the space provided. c. How does the profit vary as labour cost varies from $25 to $75 per hour and the cost of a wand core varies from $50 to $150 ? Use the appropriate data table. [Marks: 10] Note 1: Upload the Excel workbook (in which you solved this problem) by using the "Select File" option provided here. Uploading the Excel workbook is mandatory. Note 2: Only the final Excel model must be submitted..

1. Mykew Gregorovitch Mykew Gregorovitch incurs a fixed cost of 5 milion wizard dollars to
produce and sell magic wands for budding wizards. These fixed cost includes the fee paid to
cover a designer to design the wands, the fee paid to an expert wizard who would determine
wand flexibility, etc. The materiais used to make a wand include a wand core for 100 wizard
dollars, wand quality wood for 50 wizard dollars, wand grip for 30 wizard dollars, and a wand
head for 20 wizard dollars. The labour required to assemble a wand amounts to one-quarter of an
hour for a worker earning 50 wizard dollars per hour. a. Develop a base case spreadsheet model
to help Mykew Gregorovitch decide the price at which to sell a wand. Make suitable
assumptions. Write the value of the base case outcome in the space provided. b. At a unit price of
$250, how many wands must be sold to breakeven? Which Excel feature will you use to find the
breakeven value? Write your answer in the space provided. c. How does the profit vary as labour
cost varies from $25 to $75 per hour and the cost of a wand core varies from $50 to $150 ? Use
the appropriate data table. [Marks: 10] Note 1: Upload the Excel workbook (in which you solved
this problem) by using the "Select File" option provided here. Uploading the Excel workbook is
mandatory. Note 2: Only the final Excel model must be submitted.