Create a chart that plots profit, Strategic Management

Assignment Help:

Excel is often used to perform "what-if" analyses. In these, a model that depends on a number of variables is constructed, and the outcomes predicted by the model are determined for a a range of values of the input variables.  The following matematical model describes the way in which the profit of a trucking company depends on a number of variables, including the price of petrol.

The input variables are:

1. the price of petrol in cents per litre, P;

2. the price the company charges its customers in dollars per km-tonne, T;

3. the volume of business carried out in a year, in km-tonnes, V ;

4. the rate of petrol consumption, R;

5. maintenance costs, in dollars, M;

6. the number of employees, E;

7. the average salary of employees, in dollars per year, S.

The company has no control over the price of petrol. It can decide what it will charge its customers and what the average salary of employees will be.  The volume of business carried out in a year will depend on the price charged to customers. The volume of business will determine the total price of petrol purchased during the year, the maintenance costs and the number of employees. The volume of business is given by

Vid should be the nal four digits of your student number, treated as an integer in the range [0, 9999]. So if your student number is 12345678 you should use,

 

for every 2.5 x 106 km-tonnes, or part thereof. This in turn determines maintenance costs, $12,000 per truck per year, and the number of employees, which is N + 4.

The volume of business also determines the amount of petrol consumed by the company, at the rate (R) of 0.2 litres per km-tonne.

The revenue collected by the company is VT.

The costs incurred by the company are the price paid for petrol, the costs of maintenance, salary costs and overhead costs of $60,000 per year.

The profit is the difference between the revenue and the costs. To perform the "what-if" analyses, you will need to do the following:

(a) Write a VBA function that will calculate the costs incurred by the company given P, T and S.

(b) Create a spreadsheet with cells where the values of T and S can be entered.  Beneath them construct a table with the column headings Price of petrol, Volume of business, Revenue collected, Costs incurred and Profit. In the first column, insert prices going from $1.00 to $2.00 in increments of five cents. Set up formulae in the remaining columns that will perform the required calculations.

(c) Create a chart that plots profit against the price of petrol.

(d) Test the spreadsheet using the values of  T = 0.40 and take the value of S from the first five digits of your student number. So if your student number is 12345678 take S = 12345 as the salary amount to use in your test.


Related Discussions:- Create a chart that plots profit

In a cost/benefit analysis, Payback period = total cost of investment / est...

Payback period = total cost of investment / estimated annual revenue

Discuss the main categories of the matrix, Question: (a) ‘Many organi...

Question: (a) ‘Many organisations are using the internet a tool for survival. Digital firms require new organisational designs and management processes'. Explain how the Por

Doric conversion technologies, Doric Conversion Technologies, Inc. Requi...

Doric Conversion Technologies, Inc. Requirements: 1.      Consider the case study from the perspective of Kantianism and Social contract theory. On the basis of the ethical d

Financial perspective for not-for-profit organisations, Q. Financial perspe...

Q. Financial perspective for not-for-profit organisations? The primary objective is profit for most organisations, but for an NPO they are non-profit making. Value for money (V

Sanlam, write an essay of approximately 1500 words in which you critically ...

write an essay of approximately 1500 words in which you critically analyse and evaluate the value innovation strategy that sanlam opted for in their 2009 blue star financial advise

Solve this question as soon as posibble, Tangy spices Ltd, the countries’ ...

Tangy spices Ltd, the countries’ biggest spices marketer has decided to launch a hostile bid for Italy’s major spice marketer Chilliano. This is a rare case of an Indian company ma

What does process of crafting and executing strategy entail, What Does Proc...

What Does Process of Crafting & Executing Strategy Entail? 1.   Crafting & executing a company's strategy is a five-stage managerial process: (a). Developing a strategic vi

Business and corporate level strategy, Business-Level Strategy From the...

Business-Level Strategy From the outset, you were required to focus on the strategic business unit (SBU) to ensure that Business-level strategies could be applied. The challeng

Technology can drive substitution of products or services by, A) Producing ...

A) Producing new and better products or services B) Substitution of require by a related product or service C) Displacing consumer spending into latest unrelated products and

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd