Profit Maximization Project

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					                                              A                                                      B
 1   Project 6 Skill Drills: Using Problem Solving Tools
 2
     Skill drill exercises reinforce the skills presented in Essentials lessons. If you have problems, use on-
 3   screen Help.
 4
 5   What would you like to do?
 6
 7                                         Skill(s)                                              Sheet
 8   1. Use Goal Seek                                                                  #1-GoalSeek
 9   2. Create and save scenarios                                                      #2-Scenario
10   3. Use Solver to maximize profits                                                 #3-SolverMax
11   4. Create a two-variable data table                                               #4-DataTable
12   5. Delete a data table                                                            #5-DeleteTable




6cd02e71-d6e9-4b3a-9d40-1e642c7322e6.xls              Overview                                            7/11/2011
                  A               B           C               D               E
 1   Project 6 Skill Drills: Using Goal Seek
 2   E-books Inc.
 3   Projected net income model for electronic books - 2002
 4   Analysis performed using Goal Seek
 5   As of:
 6
                               Fee per     Cost per
 7            Book Type         Page        Page          Pages Sold      Net Income
 8   Academic Text Books          0.025          0.018      390,400,200     2,732,801
 9   Professional Journals        0.036          0.021      129,300,900     1,874,863
10   Books: Fiction               0.038          0.019       97,000,300     1,843,006
11   Books: Non-fiction           0.034          0.022       87,340,500     1,048,086
12                                         Total Projected Net Income       7,498,756




6cd02e71-d6e9-4b3a-9d40-1e642c7322e6.xls   #1-GoalSeek                                  7/11/2011
        A          B          C             D         E       F   G
 1   Project 6 Skill Drills: Creating and Saving Scenarios
 2
 3
 4               250,000 Loan Amount
 5                 6.25% Interest Rate
 6                     15 Term (in years)
 7
 8              $2,143.56 Monthly Payment




6cd02e71-d6e9-4b3a-9d40-1e642c7322e6.xls        #2-Scenario           7/11/2011
Project 6 Skill Drills: Using Solver to Maximize Profits
Production Model
Profit Maximization Using Solver
As of:

                 Units of Production                Contribution to Profit
                                            Per Unit    Per Unit
                Standard       Deluxe       Standard     Deluxe
                  Model        Model          Model       Model       Total Profit
                           0            0    $19.00      $24.00             $0.00


Constraints:
                Hours per Hours per
Manufacturing Standard        Deluxe         Hours      Hours        Hours
    Process        Model      Model          Used      Available   Remaining
     machining         4.00       9.00           0.00       2,500    2,500.00
      assembly         2.50       2.00           0.00         800      800.00
     packaging         0.10       0.30           0.00          75       75.00
Individual Production Requirement                    Total Resources




6cd02e71-d6e9-4b3a-9d40-1e642c7322e6.xls         #3-SolverMax                        7/11/2011
             A               B         C   D           E            F              G            H            I             J             K
 1   Project 6 Skill Drills: Creating a Two-Variable Data Table
 2   Table of Monthly Payments
 3   Analysis Using a Two-Variable Data Table
 4   As of:
 5
 6                                                Table of Monthly Payments
 7            Input Variables                                                             Amount Borrowed
 8   Interest Rate            8.00%                $1,100.65 $     150,000    $    160,000 $ 170,000 $      180,000   $   190,000   $   200,000
 9   Term (years)                 30                   6.00%




                                           Rate
10   Loan Amount         $ 150,000                     6.25%
11   Months per Year              12                   6.50%
12                                                     6.75%
13                                                     7.00%
14                                                     7.25%
15                                                     7.50%
16                                                     7.75%
17                                                     8.00%
18                                                     8.25%
19                                                     8.50%




6cd02e71-d6e9-4b3a-9d40-1e642c7322e6.xls                            #4-DataTable                                                        7/11/2011
             A               B          C   D        E          F             G               H            I            J            K
 1   Project 6 Skill Drills: Deleting a Data Table
 2   Loan Payment Analysis -The Family Motor Home
 3   Analysis Using a Two-Variable Data Table
 4   As of:
 5
 6
 7            Input Variables                                       Years to Finance (Term)
 8   Interest Rate             8.00%               $614.95       3              4             5            6            7            8
 9   Term (years)                   8                8.00% $   1,363.13 $ 1,061.96 $          882.02   $   762.70   $   678.00   $   614.95



                                            Rate
10   Loan Amount         $    43,500                 7.00% $   1,343.15 $ 1,041.66 $          861.35   $   741.63   $   656.53   $   593.07
11   Months per Year               12                6.00% $   1,323.35 $ 1,021.60 $          840.98   $   720.92   $   635.47   $   571.65




6cd02e71-d6e9-4b3a-9d40-1e642c7322e6.xls                            #5-DeleteTable                                                       7/11/2011

				
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