Using Excel as a DSS

Assumptions and requirements for worksheet “Original Data” (3 Points)

All your formula used in your calculation should use meaningful cell
names such as =+TotalRevenue – TotalCOGS , please don’t use cell reference
such as =+E13-E19 unless it is necessary (such as formula for calculating each
products revenues and COGS where you need to copy and paste formula
using relative addresses). Yes, you need to name these cells yourself first.
1. The total number of units sold in 2008 for these three products are listed
as the following:

2008
Unit Sold
Product A 3000
Product B 4500
Product C 2300

Please fill out all the yellow boxed cells such as the following according to
the requirements below:

 
 
 
2. The estimated number of unit to be sold for all three products in
2009 over 2008 number should be calculated based on the
percentage of increase as specified in Cell D3 which is currently
set at 10%. Name the D3 cell as increasePCT.
3. All the calculation required are based on the 2009 forecast target of units
to be sold for Product A, B, and C.

4. Calculate the revenues and costs of goods sold (COGS) for each products
based on 2009 data.

5. TotalRevenue is the sum of the revenues for all three products for
2009.

6. TotalCOGS is the sum of the COGS for all three products for 2009.
7. GrossProfit = TotalRevenue – TotalCOGS

8. Salary is 15% of TotalRevenue (the sum of the revenues for all three
products for 2009)

9. Advertising is 4% of TotalRevenue
10. Miscellaneous expenses are 1% of TotalRevenue
1
11. OperatingExpense = Salary + Advertising + Miscellaneous expenses

12. EarningBeforeTax = GrossProfit - OperatingExpense

13. Calculate the Taxes based on tax rate of 30% against the
EarningBeforeTax.
14. Net Profit = EarningBeforeTax- Taxes

Assumptions and requirements for worksheet “Goal Seek” (2 points)

Use “Goal Seeking” worksheet for the following Goal Seeking What-if Analysis.
If you want the gross profit to be $150000 when the Target Units Sold for
products B and C are given (4500 and 2300 units each) and they cannot be
changed.

Use Goal Seeking feature to find out how many units of Product A you need to
sell to reach the $150,000 Total Gross Profit goal. Put your answer in J13 in
worksheet “Goal Seek”.

Use Goal Seeking feature to find out how many units of Product A you need to
sell to reach the $200,000 Total Gross Profit goal. Put your answer in J14 in
worksheet “Goal Seek”..

Assumptions and requirements for the scenario analysis of pricing mixes.

(2 points)

1. Open the Worksheet “Scenario-Question”. In Part I, create a

scenario using the data and formula given in the gray
area in Scenario Question worksheet.
2. Keep the Scenario setting after you have created it successfully and you
have to use the scenario manager to create the required scenario
summary (i.e., a separate worksheet) for you.

3. You will create 4 different scenarios by changing the product pricing

mix in order to determine their impacts to Total Gross Profit and Total
Revenue.

The first scenario is the original Pricing Mix with no price change.
The Second Scenario is to raise the price of Product A by $5.00
The Third Scenario is to raise the price of Product B by $5.00
The Fourth Scenario is to raise the price of Product C by $5.00

The four pricing mixes are listed in the following:

Product Name Pricing Mix 1 Pricing Mix 2 Pricing Mix Pricing Mix 4

2
 3
Product A $50.00 $55.00 $50.00 $50.00

Product B $45.00 $45.00 $50.00 $45.00

Product C $32.00 $32.00 $32.00 $37.00

 
Working with the data given in the gray area in Scenario Question
worksheet. Create a Scenario summary report as a separate
worksheet such as the one below (The actual result cells values were
altered to hide their true values, your answers should have different
values).

 Make sure the Results Cells include TotalGrossProfit and

Totalrevenue

 Use meaningful labels for the Changing Cells and Results Cells (for
example using the label "Product_A_Price" instead of $F$10). The
Best Way to do this is to name all the Changing Cells and Results
Cells.

 Circle the product mix scenario that results in the highest

TotalGrossProfit and also insert an Oval Callout shape with text
inside stating that the circled scenario is “The Most Profitable
Scenario”. [Use Insert > Shape as the following screen
snapshot]