Tech Innovate is on the verge of launching Eco Gadget, a ground breaking product poised to redefine the tech landscape.

With
management strategy that ensures long-term profitability in a market known for its volatility. The initial setup involves a fixed
priced consistently at Rs. 150 per unit. However, the real challenge lies in navigating the complexities of sales growth and cost
analysis that projects the profit outlook for Eco Gadget over the next five years, taking into account fixed product pricing while
Rate: 5%Product Price: Fixed at Rs.150 per unitThese parameters are essential for adjusting your projections and crafting a str
period, considering the initial conditions and the specified annual growth rates in sales volume and costs, with a fixed product
profit margin over the five years

Name Akash Kaushik

Roll no 23b4epgp118
Section B
Problem no 9 Excel model to forecast Tech innovate profit

Initial fixed cost ₹ 200,000.00

Variable cost ₹ 50.00
Target sell (units) 5000
Selling price ₹ 150.00
Sells growth rate 10%
Annual cost growth rate 5%
Profit (after selling 5000 units) ₹ 300,000.00

Years Sales volume production cost Total cost

1 5000 ₹ 250,000.00 ₹ 450,000.00
2 5500 ₹ 288,750.00 ₹ 738,750.00
3 6050 ₹ 333,506.25 ₹ 1,072,256.25
4 6655 ₹ 385,199.72 ₹ 1,457,455.97
5 7320.5 ₹ 444,905.68 ₹ 1,902,361.64

We can see profit is growing each year.

 redefine the tech landscape. With a steadfast commitment to innovation, the strategic launch team is now faced with a pivotal challenge
y. The initial setup involves a fixed launch cost of Rs. 200,000, a variable production cost of Rs. 50 per unit, and a set sales target of 5,000 u
mplexities of sales growth and cost inflation over a six-year horizon.NomreUncategorizChoose a c4SuENGINThe Challenge:Your task is to d
account fixed product pricing while adapting to anticipated annual sales growth and variable cost inflation.Annual Sales Volume Growth Ra
your projections and crafting a strategy that maximizes long-term profitability.Your Mission:Construct an Excel model to forecast Eco Gad
me and costs, with a fixed product price point.Synthesize your findings to pinpoint the most advantageous sales and cost management str

Revenue profit Profit per year

₹ 750,000.00 ₹ 300,000.00 ₹ 300,000.00
₹ 1,575,000.00 ₹ 836,250.00 ₹ 536,250.00
₹ 2,482,500.00 ₹ 1,410,243.75 ₹ 873,993.75
₹ 3,480,750.00 ₹ 2,023,294.03 ₹ 1,149,300.28
₹ 4,578,825.00 ₹ 2,676,463.36 ₹ 1,527,163.07
 d with a pivotal challenge: crafting a sales and cost
set sales target of 5,000 units, with the product
hallenge:Your task is to develop a comprehensive
l Sales Volume Growth Rate: 10%Annual Cost Growth
model to forecast Eco Gadget's profit over a five-year
and cost management strategy that ensures a robust