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Profit Maximization
Author
Date
Purpose	Choose between two sales scenarios to determine the one that maximizes Profit for iPhone App and use Goal Seek

Scenario Sheet

App for iPhone
Estimate of Annual profit for year 1	Scenario 1	Scenario 2	Goal Seek		Recommendation (Scenario 1 or Scenario 2)
Assumptions					Quantity Sold for Goal Seek
Sales Price
Quantity Sold
Fixed Costs
Developer costs	$30,000.00	$30,000.00	$30,000.00
Advertising	$24,000.00	$24,000.00	$24,000.00
Maintainence and Support	$12,000.00	$12,000.00	$12,000.00
Total Fixed Costs
Variable Costs
Apple's commission as percent of Sales price	30%	30%	30%
Variable Cost per unit
Total Variable Costs
Breakeven and Profit
Contribution Margin
Quantity to be sold for Breakeven
Sales Revenue
Net Profit

&F &A &D