If Acme company (HW_05.xlsx) makes the following changes from our demonstrated example in its bid:...

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Accounting

  1. If Acme company (HW_05.xlsx) makes the following changes from our demonstrated example in its bid: 1) change the fixed cost to $8000; 2) change probabilities of Great, Fair and Awful to 0.55, 0.30, and 0.15 respectively; 3) the unit margin is $15.

(Please note that all changes have been reflected in Hw_05.xlsx)

Please reconsider that

  1. whether Acme company should market the new product or abandon it, and 2) perform the sensitivity analysis if all sales volumes are decreased by 5%, 10%, 15%, and 20%.

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