Ollivanders Co. is investigating a new swimwear product line for its apparel division. Recent advances in fabric technology and aerodynamic styling have resulted in bodysuits that are highly prized by competitive swimmers. Ollivanders’ sales staff reports that customers are requesting these high-tech bodysuits. Before Ollivanders commits to manufacturing the suits, Florian Fortescue, VP of Marketing,wants to analyze sales price options and evaluate the profitability of the product he plans to call the WizardSkin. The sales group at Ollivanders has estimated that it could sell about 3000 units of WizardSkin at a price of $129.95. What if this estimate of the number of units sold is incorrect? What if the projected number of swimmers who want to wear WizardSkin is too optimistic? The company has a policy that all prices must end in 9.95. For now, Florian makes the following assumptions about costs. Manufacturing cost per unit of the product is $75.75 and the fixed manufacturing cost is $52,000. Distribution cost per unit is $5. Marketing cost is $75,000 and Selling and Administrative cost is $18,000.

a. Draw the Influence Diagram and the Black Box Diagram for this problem.

b. Prepare the layout of the spreadsheet model for this problem.

c. Build the base case spreadsheet model to help Florian.

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