#3
Assignment #1
Creating a Spreadsheet Model
DUE: Monday, January 24
10 points


1) Complete the spreadsheet on handout #2.
The data should be as follows:

2) Print the spreadsheet. How do you print it with the gridlines and the row and column headings? Look in HELP to find out.
Circle the production, profit/loss, and break-even figures.

As you will note, Special Products Co. cannot produce what they forecast can be sold. Therefore, management is considering contracting out part of the job of building the widget, namely the thingamajig for the widget, to another company that has more expertise in building thingamajigs. If this is done, the Special Products Co. would not incur any additional fixed costs but would now have a marginal cost of $650 while still obtaining revenue of $900. However, sales analysis indicates that 300 widgets can then be produced.

3) Change the values in the spreadsheet to reflect the above scenario.
Print the spreadsheet.
Circle the production, profit/loss, and break-even figures.
Print the spreadsheet with the formulas displayed. How do you do this? Use the HELP feature.

4) Type a short analysis of your recommendations to the company.

5) Use the same spreadsheet to complete question #10 on page 19 of your text. Change the name of the company, the fixed costs (in cell C5), the variable cost, and the revenue per unit. The spreadsheet will then calculate the break-even point. Enter this break-even point in the estimated sales and estimated production in order to determine the total break-even cost and total break-even revenue (these two values should be equal), and the break-even profit (should be zero).

6) Print the spreadsheet.


You will submit: