Question

1. Analyze the spreadsheet shown in the figure below which summarizes monthly sales of shoes for Florina, including leather shoes, sport shoes, and personalized sport shoes. [2 Marks]
   1. You have to identify the decision, constants, and output variables in the spreadsheet based on the information given in figure? Indicate how much money Florina can make per month from the sales of shoes?
   2. Give your views on which type of shoe they should promote the most aggressively to increase the revenue of the company on the basis of information given in figure?

	A	B	C	D
1	Florina
2	Shoe Type	Price (in SAR)	Unit to Sell	Subtotal (in SAR)
3	Leather Shoes	200	1200	240000
4	Sports Shoes	350	1800	630000
5	Personalized Sports shoes	400	800	320000
6	Total Revenue			1190000

plz, NO Handwriting And NO Pictures... Thank you in Advance

Answer 1

1. the decision to be taken is the number of shoes of each type to be produced to maximise the revenue under given constraints. The constants are price per unit of each type of shoes. Input variables are the number of each type of shoes, while the output variables are the subtotal of revenue generated from the sale of each type of shoe.

2. The revenue combined from the sale of three type of shoes is 1190000. The highest selling and highest revenue generating shoe is sport shoe, which also has higher price and presumably higher contribution. The other shoe which has highest price is personalised shoe.. The company should focus on sport shoe, while try to build market for personalised shoes to maximise the revenues.