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Module 9 Prompt (1)

The Module 9 Homework requires students to create a spreadsheet model for Eastman Publishing Company to calculate profit/loss based on demand for an electronic textbook and to use Goal Seek for break-even analysis. Additionally, students must analyze orders for Richardson Ski Racing using VLOOKUP for revenue calculation and COUNTIF for order distribution across price bins. The assignment emphasizes individual work, spreadsheet design principles, and the use of formulas without hard-coding.

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0% found this document useful (0 votes)
32 views

Module 9 Prompt (1)

The Module 9 Homework requires students to create a spreadsheet model for Eastman Publishing Company to calculate profit/loss based on demand for an electronic textbook and to use Goal Seek for break-even analysis. Additionally, students must analyze orders for Richardson Ski Racing using VLOOKUP for revenue calculation and COUNTIF for order distribution across price bins. The assignment emphasizes individual work, spreadsheet design principles, and the use of formulas without hard-coding.

Uploaded by

ajmalfarid077
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Module 9 Homework Prompt

This is an individual assignment; while you are permitted to ask the instructor or a classmate specific
questions if you get stuck, you are to complete your own work. This assignment comes with no
template; you are to design your own following the principles for good spreadsheet design described in
the Chapter 10 Lecture Slides. Also, remember that your spreadsheet should be built containing
formulas to calculate all values using the input parameters – hard-coding is NOT permitted!

Once you are finished, upload your completed workbook (your submission should be one workbook
with two worksheets) to the Spreadsheet Models Homework folder. If you wish to make changes to your
submission, you may click on the title of the assignment to begin a new submission, but completing a
new submission will overwrite the previous one. As you always should, make sure you save early and
often!

Problem 1

Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet


applications for business. The fixed cost of manuscript preparation, textbook design, and website
construction is estimated to be $160,000. Variable processing costs are estimated to be $6.00 per book.
The publisher plans to sell single-user access to the book for $46.

a. Build a spreadsheet model to calculate the profit/loss for a given demand. For example, what profit
can be anticipated with a demand of 3500 copies?

b. Use a data table to very demand from 1000 to 6000 in increments of 200 to assess the sensitivity of
profit to demand.

c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even
with the demand of 3500 copies. Before you move on to Problem 2, make sure you save your workbook
with this value displayed or else you will not receive credit.

Problem 2

Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR’s products is
fencing used on downhill courses. The fence product comes in 150-foot rolls and sells for $215 per roll.
However, RSR offers quantity discounts. The following table shows the price per roll depending on order
size:

Quantity Ordered
From To Price per Roll
1 50 $215
51 100 $195
101 200 $175
201 And up $155
The file RSR contains 172 orders that have arrived for the coming six weeks. Copy and Paste the data
from the RSR.xlsx workbook into a new worksheet in your workbook, and use that information to
answer the following questions.

a. Use the VLOOKUP function with the preceding pricing table to determine the total revenue from
these orders.

b. Use the COUNTIF function to determine the number of orders in each price bin.

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